Candlestick Alphabetical Entries
abandoned baby (bear) a three-day pattern showing up at or near the conclusion of an uptrend, and signaling the probability of trend reversal. The first day is an uptrend candle; the second occurs after an upside gap, and is either a narrow-range day (NRD) or a doji. After the second session, a downward gap occurs, and that gap is larger than the previous gap; the third day is bearish.
KEY POINT:
The abandoned baby pattern is especially descriptive and the name emphasizes its importance. The “abandoned” portion (the doji session) is preceded and followed by gaps, as if it is abandoned on both sides.
The second ...
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