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