Definition
Bearish Abandoned Baby is a rare formation. It consists of two candles and forecasts an upcoming inclining trend. It includes a Doji Star with a gap before and after the candle.
- Trend: Reversal
- Expected trend: Bearish
- Previous trend: Bullish
- Reliability: High
- Type: Bearish
- Number: 3
Recognition
- The market is in an upward trend.
- The first day is a long white candle.
- The second day is a Doji with a gap in the trend’s direction.
- The third day is a black candle, opening with a gap in the opposite direction of the trend.
Interpretation
The mood on the market is optimistic in the ascending trend. On the second day, an upward gap is formed, but the price increase stops at this point. The second day is characterised by a narrow trading range, and the opening and closing price are near each other (Doji). This candle reflects the exhaustion of the trend, and it is confirmed by the black candle opening with a downward gap on the third day.
Important factors
Bearish Abandoned Baby is a very uncommon formation. The pattern has a high reliability, but requires a confirmation. The confirmation could come from a black candle with a downward gap or a lower closing price.
