What it means
Abandoned baby is a star pattern (morning or evening) where the middle candle is a DOJI and fully gaps away from both the first and third candles on both sides — leaving the doji visually isolated. Bullish abandoned baby = at bottoms; bearish = at tops. Rare due to the dual-gap requirement; nearly only forms on stocks with overnight gaps (not in 24-hour markets like FX or crypto).
Why it matters
When it forms, abandoned baby is one of the highest-reliability candlestick patterns — Bulkowski reports ~80%+ follow-through. The dual gap signals a sharp sentiment regime change that bracketed an indecision pause.
How to use it
Trade on close of the third (confirming) candle. Stop beyond the doji's extreme (low for bullish, high for bearish). Target = the move that preceded the entry pattern. Mostly applicable to stocks; very rare in continuous markets.
Want a worked example or a deeper dive? Ask Rocky how this concept applies to your specific watchlist or trade idea.
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