Abandoned baby pattern
Definition of Abandoned baby pattern
An abandoned baby pattern is a chart pattern formed at a reversal point of a trend. We can observe three candles each with a different characteristic to identify the pattern forming.
Bullish Abandoned baby pattern
When the price of security is in a bearish trend. The first candle will be red indicating a downward trend. The second candle will be a doji meaning a very small body and a long shadow. The last and third candle will be a lead indicating a bullish trend reversal.
Bearish abandoned pattern
When the price of security is in a bullish trend. The first candle will be green indicating an upward trend. The second candle will be a doji meaning a very small body and a long shadow. The last and third candle will be a lead indicating a bearish trend reversal.
