Definition
Bullish Abandoned Baby is a very uncommon, trend reversal formation. It includes a Doji Star. Before and after the Doji there is a gap (include the shadow).
- Trend: Reversal
- Expected trend: Bullish
- Previous trend: Bearish
- Reliability: High
- Type: Bullish
- Number: 3
Recognition
- The market is in a downward trend.
- The first day is a long black candle.
- The second day is a Doji, forming a downward gap from the previous day’s candle.
- The third day is a white candle, forming an upward gap. The two shadows cannot cover each other.
Interpretation
On the first day, the inclining trend is still influencing the market participants. The second day starts with a gap, but the sellers’ dominance does not last very long. The trading range of the second day is narrow. The third day is confirmed by a white candle, supported by an upward gap.
Important factors
Bullish Abandoned Baby formation is rare. The formation is highly reliable, but a confirmation is necessary (may come from a white candle with higher closing price or gap).
