Stick Sandwich

The stick sandwich is a bullish position that implies the increase in a stock, but the parameters for forming a stick sandwich are extremely strict.

1. The first candle in a stick sandwich is a downward candle. This does not have to feature a reversal shadow at the bottom.
2. The second candle will be a positive one. It does not need a shadow and it can be larger in size than the first candle, but the increase should at least be noticeable.
3. The third candle is another downward one that can be larger in size, but the close should be at the same value as the close of the first stick.

A perfectly formed stick sandwich will show the stock moving upward. The bottom parts of the downward sticks show the price level that the stock will resist and stay above. You can place your order for a long-trade or a call option when the second downward stick is fully formed. Create a stop-loss order near the bottom by adding the middle part of the sandwich to the bottom of the other two parts. This should give you enough coverage if it takes extra time for the positive trend to start going.