The Bearish Abandoned Baby mirrors the bullish version but signals a potential top.
It features a gap up doji followed by a gap down, leaving the middle candle isolated above the prior range.
The strategy sells short when the third candle gaps below the doji, aiming to profit from the abrupt shift in sentiment.
Risk is limited with a stop just above the doji high in case price recovers.
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