Abandoned Baby Pattern
The Abandoned Baby candlestick pattern is a rare reversal pattern found in technical analysis, often indicating a change in the trend’s direction.
The Abandoned Baby pattern consists of three candles:
- First Candle: A large candle in the direction of the existing trend (bullish or bearish).
- Second Candle: A Doji candle that gaps away from the first candle. There should be no overlap with the body or shadows of the first candle.
- Third Candle: A large candle in the opposite direction of the first candle, confirming the trend reversal. The third candle should also gap away from the Doji.
Bullish Abandoned Baby
- Occurs at the end of a downtrend.
- First candle: Long bearish candle.
- Second candle: Doji with a gap down.
- Third candle: Bullish candle with a gap up, signaling a trend reversal to the upside.
Bearish Abandoned Baby
- Occurs at the end of an uptrend.
- First candle: Long bullish candle.
- Second candle: Doji with a gap up.
- Third candle: Bearish candle with a gap down, signaling a trend reversal to the downside.
Abandoned Baby Pattern
To identify or document the Abandoned Baby pattern:
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Open the platform: Load the chart of your desired stock or instrument.
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Select the Timeframe: Choose a timeframe that suits your analysis (daily or longer works best for this pattern).
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Candlestick Chart: Ensure you have set the chart type to candlestick.
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Pattern Recognition Tool: Go to Fx Study section and from the candle pattern section, choose abandoned baby pattern.
