Structure of the Bearish Stick Sandwich Pattern

First Candle – Bearish Candle

Appears at the top of an uptrend.

Shows the first sign of selling pressure.

Closes at a specific price level, which becomes key resistance.

Second Candle – Bullish Candle

Opens higher and closes bullish.

Buyers try to push the price upward.

But it fails to break and hold above the first candle’s close, showing weak bullish momentum.

Third Candle – Bearish Candle

Opens higher (sometimes at the same level) but closes exactly at the same price as the first bearish candle.

This matching close creates the “stick sandwich” effect.

Confirms resistance and bearish pressure.

Importance

The Bearish Stick Sandwich pattern is important because it highlights a strong resistance level where buyers fail twice, signaling weakening bullish momentum. It confirms growing seller strength and warns of a potential trend reversal from uptrend to downtrend. This makes it a useful and easy-to-spot pattern for traders looking to enter short positions or exit long trades.

Conclusion

The Bearish Stick Sandwich pattern is a strong reversal signal that highlights a firm resistance level where buyers repeatedly fail to maintain control. By sandwiching a bullish candle between two bearish candles with identical closing prices, the pattern clearly indicates weakening bullish momentum and strengthening bearish pressure. When this formation appears at the top of an uptrend, it serves as a reliable warning of a potential downward reversal.

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