In the real world, an abandoned baby is a startling and terrible sight. In the world of candlesticks, it is a very rare reversal signal. Sometimes the abandoned baby will be a bear (or should I say a cub?), and other times it will be a bull (a calf, if you like). Either way, it signals that the current trend will soon reverse. Happily, its formation fits its name quite well—a tiny doji on its own (the baby), the surrounding candles a step higher or lower (the parents)—so it is easy to identify. If you would like to understand the Abandoned Baby candle pattern, you’re in the right place. Today we’re discussing how to spot it, what it means, and why you shouldn’t ignore its presence.
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