Bullish Abandoned Baby Pattern
BULLISH ABANDONED BABY PATTERN (BABP)
A very rare bottom reversal signal
1. Market is on a downtrend;
2. Day 1 has a long black candlestick;
3. A Doji appears on Day 2. Its shadows gap below Day 1’s lower shadow and gaps in the direction of the previous downtrend; and
4. Day 3 has a white candlestick with a gap in the opposite direction with no overlapping shadows
In a falling market, the market shows the strength of the bears with a long black stick and opens with a gap on Day 2. The trading on the second day is within a small range and Day 2 closes at its open (or very near its open). This hints the potential for a rally showing that positions are changed. The trend reversal is signaled by the white body on Day 3.
1. The BABP is rare
2. The pattern’s reliability is high, but a confirmation is suggested (through a white candlestick with a higher close or a gap-up).