1. The first candlestick in the formation is a long black (red) candlestick that closes near its low.
2. The second candlestick is a white (green) candlestick that gaps up from the previous close and closes above the previous day's open.
3. The third candlestick is a black (red) candlestick that completely engulfs the second candlestick and has the same closing price as the first candlestick. Traders should wait for the high of the third candlestick to be broken in the bullish stick sandwich formation prior to taking any long positions.
If the third candlestick closes at the same as first cs, we might have a reversal?
Thanks. First time I heard of this. Both candles on either side must be longer than the center candle though.