How to trade abandoned baby pattern?

In these cases, traders should understand that the following criteria must be met when trading the Abandoned Baby pattern: First price candle: Large bearish candlestick in a downtrend, or a large bullish candlestick in an uptrend.

What is the abandoned baby reversal pattern?

The abandoned baby pattern is a 3-bar reversal pattern. The bullish abandoned baby follows a downtrend. It has a big red candle, a gapped down doji and then a big green gapped up candle. The bearish abandoned baby follows an uptrend. It has a big green candle, a gapped up doji and then a big red gapped down candle.

What is a bullish abandoned baby pattern?

The bullish abandoned baby can be contrasted with a bearish abandoned baby pattern, which marks the possible end of an uptrend. The bullish abandoned baby is a three-bar pattern following a downtrend. It consists of a strong down candle, a gapped down doji, and then a strong bullish candle that gaps up.

What does abandoned baby mean on a chart?

Simply put, the abandoned baby bullish chart pattern indicates that the prior trend is close to ending, and a new uptrend is about to start. In other words, it is atrend reversal chart pattern used by traders to enter long positions. What time frame is best for the bullish abandoned baby candlestick pattern?