Abandoned Baby Bullish
Pattern: Reversal
Trend: Bullish
Reliability: High
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How to
Identify it
- First day is usually a
long black day
- Second day is a doji
that gaps in the direction of the previous trend
- The third day is a
white day, gapping in the opposite direction, with no
overlapping shadows
What it
Means
In a downtrend, the market
bolsters the bearish trend with a long black day and gaps
open on the second day. However, the second day trades
within a small range and closes at or near its open. This
scenario definitely shows the potential for a rally, as many
positions have been changed. Confirmation of the trend
reversal is given by the white third day, and is well
defined by the upward gap.
