Bullish Stick Sandwich
The bullish Stick Sandwich often comes during the end of a downward move and predicts the start up of a bullish move. There are three different candlesticks for this pattern.
The first is a large down day. The next day the stock should rally above the high of the first candlestick. The third and final day in the pattern the stock should engulf the third. It should be a large down day. However this day should not go past the close of the first day.
Why is the Bullish Stick Sandwich pattern bullish? When the stock is unable to make any lower advances after the first day it signals that it may have found a bottom and could start bouncing off of it. If you are hoping for a trend reversal it is always a good sign to see the stock at a stalemate because it signals the trend is weakening and may soon reverse.
Tip This pattern has been known to give off many false signals. A conservative trade may want to wait for confirmation before trading it.
Other Candlestick Patterns
Learning the different candlestick patterns can give you a nice indicator on how well a stock is doing. Here are a few different common patterns.
Ladder Bottom - A short term reversal pattern that appears when the security is at a bottom
Unique Three River Bottom – This pattern is just a confirmation of another pattern the Hamari pattern
Meeting Lines - This is another bullish indicator that consists of two separate days.
Candlestick Patterns
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