Just been reviewing some solid short-term trading setups, and the sandwich candlestick pattern keeps showing up as one of the most reliable reversal signals out there. It's honestly pretty straightforward once you see it.



Here's the basic idea: you get three candlesticks where two of them are moving in one direction, and the middle one goes the opposite way. That middle candle getting trapped between the other two is what makes this pattern work so well.

For the bullish version, imagine two red candles sandwiching a green one in between. This usually shows up when a pullback is losing steam or near a support zone. The play here is simple - wait for the price to break above that middle candle's high, then go long. Set your stop loss below all three candles, and your target is roughly the entry price plus the height of the whole three-candle structure. The logic is pretty clean: that middle candle proving the downtrend can't hold means momentum's shifting back up.

Then there's the bearish sandwich pattern - flip it around. Two green candles with a red one trapped in the middle, usually showing up at the end of a bounce or near resistance. Sell when price breaks below that middle candle's low. Stop goes above the highest of the three, and your target is entry minus the height. Same concept, opposite direction.

What I really like about this sandwich candlestick pattern is how mechanical it is. You're not guessing - the middle candle getting engulfed tells you the original trend's momentum is coming back. That gives you real clarity on both entry and where to cut losses. It's become one of my go-to setups for catching short-term reversals, especially on lower timeframes where these patterns are more frequent. Worth keeping in your playbook if you're looking for high-probability entries.
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