The Bearish Abandoned Baby Candlestick Pattern
Introduction
The Bearish Abandoned Baby candlestick pattern consists of three candlesticks and occurs at the top of an uptrend. It is the opposite of the Bullish Abandoned Baby candlestick pattern. It is a candlestick pattern that is often used by day traders to identify a bearish reversal in a stock.
In this article you will learn:
- What is a Bearish Abandoned Baby candlestick pattern
- How to identify and interpret a Bearish Abandoned Baby candlestick pattern
- Trading techniques after confirming a Bearish Abandoned Baby candlestick pattern
Our Latest Bearish Abandoned Baby Stock Alert
What is a Bearish Abandoned Baby candlestick pattern?
The Bearish Abandoned Baby is a candlestick pattern that occurs in an uptrend and indicates a stock is overbought. It consists of three candlesticks. On the first trading session, the uptrend continues with high buying pressure. The second trading session gaps up and forms the top of the uptrend, and closes near the open indicating hesitation between buyers and sellers. The third trading session closes lower with high selling pressure indicating profit taking and a reversal into a downtrend.
How to Identify a Bearish Abandoned Baby Candlestick Pattern
The Bearish Abandoned Baby candlestick pattern consists of three candlesticks. The first candlestick should be bullish, with the close higher than the open. The second candlestick should gap up and be a doji. The third candlestick should gap down and be bearish, with the close lower than the open. These three candlesticks should occur at the top of the uptrend.
Trading Techniques for the Bearish Abandoned Baby Candlestick Pattern
It is recommended to wait one trading day to confirm the Bearish Abandoned Baby pattern. If the following day is another red candle, this could mean a bearish reversal in the stock and could indicate a potential short entry point.
