(Bullish)
Abandoned Baby |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bullish
Prior Trend of Candlesticks: Bearish
Reliability of Candlesticks : 1st Grade
Confirmation of Candlesticks: Highly Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
The Bullish Abandoned Baby is a bottom reversal pattern.
Bullish Abandoned Baby formation is one of the more reliable candlestick pattern for reversing a trend.
PATTERN RECOGNITION
1. Bullish Abandoned Baby can be identified by a downtrend followed by a bottom reversal.
2. Refering to above diagram, firstly we will see a long bearish candlestick.
3. Secondly we will see a doji appears on the second candlestick which shadows gap just below the first candlestick lower shadow and gaps in the direction of the previous downtrend.
4. Finally we will see a long bullish candlestick which open by a gap above without overlapping shadow.
EXPLAINATION
In a bearish market, firstly we will observe a bearish strength with a long bearish candlestick suggesting bear is in command.
Then we will see a second candlestick open with a gap below 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 rally which indicate a reversal of trend by a long bullish candlestick on the third candlestick which open by a gap above 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
Bullish Abandoned Baby bottom reversal pattern is quite rare.
The reliability of this pattern is very high, but we need confirmation in the form of a bullish candlestick with a higher close or a gap up 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 |
