The Bullish Abandoned Baby is a rare three-candle pattern featuring a gap down doji followed by a gap up.
This formation leaves the middle candle "abandoned" and often precedes a sharp reversal higher.
The strategy buys at the open of the third candle once it gaps above the doji, anticipating strong follow-through as shorts cover.
Stops reside just beneath the doji low, ensuring losses remain small if the reversal fails to hold.
- Entry Criteria: pattern match
- Long/Short: Both
- Exit Criteria: stop-loss or opposite signal
- Stops: Yes, percent based
- Default Values:
- CandleType = 15 minute
- StopLoss = 2%
- Filters:
- Category: Pattern
- Direction: Both
- Indicators: Candlestick
- Stops: Yes
- Complexity: Intermediate
- Timeframe: Intraday
- Seasonality: No
- Neural networks: No
- Divergence: No
- Risk level: Medium