Candlestick pattern Abandoned Baby Bullish

The candlestick pattern Abandoned Baby Bullish is a trend change formation of high reliability which is generated in declining markets and indicates that there is a high probability that a change occurs from bearish to bullish trend. This pattern can be identified as follows:
  • The current trend in the market should be bearish. 
  • A large black candle which is followed by a Doji candle whose maximum occurs below the low of the previous black candle. 
  • Between these candlesticks there is a gap whichs is known as "falling window". During the next period a large white candle above the Doji is formed with an upward gap (rising window). This white candle penetrates deeply and closes within the larger black candlestick. 

When a major downtrend in the market occurs and after a period in which sellers have a strong selling pressure (period marked by a large black candle), a situation of calm and indecision is generated on the market represented by the appearance of a Doji candle. This calm anticipate a change in the price trend which occurs in the form of a large white candle that penetrates well into the body's large black candle that started the pattern.

Pattern Interpretation 

 When a major downtrend in the market occurs and after a period in which sellers produce a strong selling pressure (period marked by a large black candle), a situation of calm and indecision is generated on the market represented by the appearance of a Doji candle. This calm anticipate a change in the price trend which occurs in the form of a large white candle that penetrates well into the body of the large black candle that started the pattern. 

As in most bullish combined candlestick pattern, this formation has a higher reliability when it occurs near supports zones. Once the Abandoned Baby Bullish is completed, it becomes a support zone in which the lowest or minimum point (lower tail) of the Doji candle is the price level at which we can expect greater resistance for the continuation of the downward movement in the market. In this case we must remember that the Doji by itself fulfills this function.

This pattern has a connotation more bullish than the Morning Doji Star formation due to the presence of the upward gap, which indicates a greater buying power. 

Arguably, this pattern is a variant of the Morning Doji Star, which does not give room for interpretation due to the presence of the bullish gaps in the price. For this reason it has a distinct specification with respect to the latter pattern. 

One of the main reasons for the high upside potential is the presence of a gap or rising window, which occurs from the support zone indicated by the Doji (see Rising Window pattern which have a similar behavior).

Example of the Abandoned Baby Bullish pattern



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