The Bullish Abandoned Baby candlestick pattern is a rare, yet powerful, reversal signal. It is composed of three candles that indicate a potential trend reversal from bearish to bullish. The first bearish red candle is followed by a Doji candle, showing indecision. Finally, a bullish green candle completes the pattern, indicating a strong reversal. This article will explore the Candle Body, Wick & Colors of the Bullish Abandoned Baby pattern, along with its Modus Operandi and Fun Fact.
The first candle body is a bearish red candle, medium to long. The second candle GAPS down and become a “Doji” candlestick. The third candle GAPS up and ends as a strong bullish green, also preferably medium to long.
Candle Wick / Shadow
The first and last candle wicks are usually medium in length. The last green bullish candle might have no wick at the top close position.
The Bullish Abandoned Baby has two candles and a Doji Candlestick Pattern. The first red candle always precedes the Doji, and the last green candle. There are clear GAPS after the bearish red candle close and the bullish green open.
There are apparent GAPS after the first bearish red candle close and the last bullish green open. The bodies of the three candlesticks should not overlap from body 1 to 2 and from body 2 to 3. This pattern indicates that the price has been dropping aggressively. Doji’s are commonly associated with indecision. In this case, sellers may lose momentum, and buyers are starting to step in. The last GAP then shows that buyers regained control.
The name for this pattern was derived from the clear gaps that exist between the two candle bodies and Doji pattern.