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