What is a bullish abandoned baby pattern?

Traders watch for bullish abandoned baby patterns to signal the potential end of a downtrend. The pattern is fairly rare as the price movements need to meet specific criteria in order to create the pattern. The first bar is a large down candlestick located within a defined downtrend.

What is the abandoned baby candlestick pattern?

Now that we have covered the basics, let’s shift our focus to the star of our guide – the Abandoned Baby candlestick pattern. The Abandoned Baby pattern is a three-candlestick pattern that indicates a potential reversal in the market. It consists of a doji candle sandwiched between two candles with a gap on either side.

What is abandoned baby reversal candle pattern?

In the chart above, we see a bearish trend followed by an abandoned baby reversal candle pattern. You can see the formation in the green rectangle. This time, the abandoned baby is a doji candle, which gives additional reliability to the pattern. The next candle opens with a gap from the abandoned baby, which confirms the pattern.