BULLISH STICK SANDWICH
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JOIN FBS Definition: Get the highest rated stock from Americanbulls for this pattern >>> The Bullish Stick Sandwich Pattern is characterized by consecutive higher opens for three days, but results in an eventual close equal to the first day's close. It may warn that prices are now finding a support price. We may then see a reversal from this support level. Recognition Criteria: 1. Market is characterized by downtrend. 2. We see a Black Closing Marubozu in the first day. 3. Then we see a white candlestick, which is above the close of the first day. 4. Then we again see a Black Closing Marubozu characterized with a close equal to the close of the first day. Explanation: In the Bullish Stick Sandwich Pattern, there is a downtrend going on. Then prices open higher on the next trading day and they reach to higher levels all day, closing at or near the high. This bullish act suggests that the previous downtrend may now reverse implying that the shorts need protection. The next day, prices open at a higher level leading some shorts to cover their positions initially but then the prices start moving lower to close at the same price as two days ago. This pattern shows that the market is finding a support level and now the trend may reverse from this support level. Important Factors: A confirmation on the fourth day is required to be sure that the downtrend is reversed. Confirmation may be in the form of a white candlestick, a large gap up or a higher close on the fourth day. JOIN FBS KLIK HERE | ||||||||||||||
BULLISH STICK SANDWICH
