BULLISH ABONDONED BABY

		BULLISH ABONDONED BABY Type: Reversal Relevance: Bullish Prior Trend: Bearish Reliability: High Confirmation: Suggested No. of Sticks: 3
JOIN FBS Definition:             Get the highest rated stock from Americanbulls for this pattern >>> The Bullish Abandoned Baby Pattern is a very rare bottom reversal signal. It is composed of a Doji Star, which gaps away (including shadows) from the prior and following days’ candlesticks. Recognition Criteria: 1. Market is characterized by downtrend. 2. We usually see a long black candlestick in the first day. 3. Then a Doji appears on the second day whose shadows gap below the previous day's lower shadow and gaps in the direction of the previous downtrend. 4. Then we see a white candlestick on the third day with a gap in the opposite direction with no overlapping shadows. Explanation: We have a similar scenario that is valid for most of the three-day star patterns. In a falling market, the market shows bearish strength first with a long black candlestick and opens with a gap on the second day. The second day trading is within a small range and second day closes at or very near its open. This now suggests the potential for a rally showing that positions are changed. The signal of trend reversal is given by the white third day and by well-defined upward gap. Important Factors: The Bullish Abandoned Baby Pattern is quite rare. The reliability of this pattern is very high, but still a confirmation in the form of a white candlestick with a higher close or a gap-up is suggested.