The abandoned baby pattern is a multiple candlestick reversal pattern. A bullish abandoned baby pattern indicates the end of the selling pressure of the bears and the return of bulls in the market. Whereas a bearish abandoned baby is the sign that bulls are leaving and an indication of the return of the bearish trend in the market. 

In This Article –

• What is Abandoned Baby ? 

• How to analyse the chart using Abandoned Baby? 

• How to use Abandoned Baby on Keev? 

Category – Trend 

Type –Lagging

What is Abandoned Baby? 

An abandoned baby is a unique formation in a candlestick chart. It can either appear in a downtrend or appear in an uptrend indicating the trend reversal. It appears like a Doji star or cross, with no real body and upper and lower shadows. An abandoned baby pattern comprises three candlesticks. 

The Bullish abandoned baby pattern is the indication of reversal to an uptrend and is generally used by traders to take a buy position.  

The Bearish abandoned baby pattern is the indication of reversal to the downtrend and is often used by traders to exit a buy position and enter a short position. 

 How to analyse chart using Abandoned Baby?

Now let's understand how to analyse a chart using an abandoned baby. 

Through the above candlestick chart example, you can notice that the abandoned baby comes in after a strong uptrend. Due to this, the bulls are trapped at the top of the formation. 

The right of this formation is abandoned by the baby bottom. This is the indication of a sharp short squeeze. 

Bullish Abandoned Baby Pattern

Candle 1 is red in colour. It forms during a downward trend. 

Candle 2 forms a Doji Star that is below Candle 1’s closing price. 

Candle 3 Indicates a bullish trend and is formed above the Doji star. 

Bearish Abandoned Baby Pattern

Candle 1 is in green colour. It is formed during an upward trend. 

Candle 2 forms a Doji Star which is above Candle 1’s closing price. 

Candle 3 indicates a bearish trend and is formed below the Doji Star.