The Abandoned Baby is a reversal Japanese candlestick pattern that is formed by three candles: one doji and two candles with bodies. The Abandoned Baby is a reversal Japanese candlestick pattern that is formed by three candles: one doji and two candles with bodies. BabyPips The beginner's guide to FX trading News Trading Education Forex Glossary
What is an abandoned baby doji candle pattern?
The abandoned baby is a three candle formation. It resembles the evening and the morning star. The doji candle needs to gap from the two candles which sandwich the pattern. There should be no overlaps between the middle candle and the two candles surrounding it. The abandoned baby is one of the rarest candle patterns.
Should you invest in abandoned baby candle figures?
You can invest more than you usually invest in your deals when trading abandoned baby candle figures. There are two basic reasons for this: The abandoned baby is a pattern with a very high success rate. The stop loss when trading abandoned baby figures is usually placed very tightly. In some cases, you will risk less than 0.5% of your investment.
How do you know if a baby candlestick pattern is happening?
The chart begins with a price decrease, marked with the red arrow. At the end of the price decrease, we see a candle gapping down. This should be a signal for us that a potential abandoned baby candlestick pattern might occur on the chart.
