Bearish Abandoned Baby

The Bearish Abandoned Baby occurs after a bullish trend, characterized by a gap-up Doji, which is then followed by another gap in the opposite direction with the third day being a "down day".

Bearish Abandoned Baby

The Bearish Abandoned Baby three-day candlestick pattern is a very rare bearish reversal pattern.


Bearish Abandoned Baby Identification

The Bearish Abandoned Baby occurs after a bullish trend, characterized by a gap-up Doji, which is then followed by another gap in the opposite direction with the third day being a "down day".   The shadows on the Doji must completely gap below or above the shadows of the first and third day.

Bearish Abandoned Baby Candlestick pattern

Intrepretation of Bearish Abandoned Baby

The Bearish Abandoned Baby reflects a classic three period reversal of market sentiment where after a bullish trend, finally enough sellers enter the market to take control. This is first reflected by the doji formation where markets trade in a small range suggesting uncertainty in trend.  After day two we actually have a Bearish Doji Star, moderate strength bearish pattern and then ultimately a reversal in the direction of the market signified by a large bearish candle which confirms that sellers are driving the price down and completing the Bearish Abandoned Baby candlestick pattern. Confirmation is recommended with this pattern.

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