(Bearish)
Abandoned Baby |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bearish
Prior Trend of Candlesticks: Bullish
Reliability of Candlesticks : 1st Grade
Confirmation of Candlesticks: Highly Reliable
Candlestick Patterns Key Reference |
Forex Chart (EURUSD)
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DESCRIPTION
The Bearish Abandoned Baby is a top reversal pattern.
Bearish Abandoned Baby formation is one of the more reliable candlestick patterns for reversing a trend.
PATTERN RECOGNITION
1. Bearish Abandoned Baby can be identified by a uptrend followed by a top reversal.
2. Refering to above diagram, firstly we will see a long bullish candlestick.
3. Secondly we will see a doji appears on the second candlestick which shadows gap just above the first candlestick upper shadow and gaps in the direction of the previous uptrend.
4. Finally we will see a long bearish candlestick which open by a gap below without overlapping shadow.
EXPLAINATION
In a bullish market, firstly we will observe a bull strength with a long bullish candlestick suggesting bull is in command.
Then we will see a second candlestick open with a gap above the first candlestick which move within a small range and closes at or very near to its open thus forming a doji.
Finally we will see the potential decline which indicate a reversal of trend by a long bearish candlestick on the third candlestick which open by a gap below previous doji candlestick without overlapping shadow.
The 1st grade reversal patterns are the most reliable group of reversal patterns that seldom require any confirmation.
POINT TO NOTE
Bearish Abandoned Baby top reversal pattern is quite rare.
The reliability of this pattern is very high, but we need confirmation in the form of a bearish candlestick with a lower close or a gap down is suggested.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
