Abandoned Baby Candlestick pattern
Abandoned Baby candlestick pattern is a very rare Japanese candlestick pattern. It is formed near the downtrend support level and near the uptrend resistance level. When it is formed near downtrend support level then we call it Bullish Abandoned Baby Candlestick pattern and when it is formed near the uptrend resistance level then we call it Bearish Abandoned Baby Candlestic pattern.
Short infographic data of a bullish abandoned baby
The Bullish Abandoned Baby Candlestick pattern
Bullish Abandoned Baby is a clear reversal pattern. When it is formed near the downtrend support level then we call it a bullish abandoned baby candlestick pattern. It needs three candlesticks. The first candlestick is strongly bearish, the second candlestick must be Doji and the third candlestick is strongly bullish. Now I'm telling you how to recognize this pattern.
How to recognize the bullish abandoned baby candlestick Pattern?
Yes, it's a very impotent question. Now I'm telling you how to recognize a bullish abandoned baby candlestick pattern.
- It needs three candlesticks.
- The first candlestick is a strong bearish.
- The second candlestick is absolutely Doji candlestick ( color doesn't matter ) formed below first bearish candlestick falling a gap.
- The third candlestick is an absolutely strong Bullish candlestick.
- The third candlestick appears above the Doji rising up making the same gap.
- Third candlestick's opening price near the first candlestick's closing price.
- Third candlestick's closing price above the middle of the first candlestick.
How to trade using bullish abandoned baby candlestick?
A bullish abandoned baby is a highly reliable pattern. When it appears in the chart, every trader and investor be happy to see this. Because they know what will happen in the market now. They will make a strong buy entry if the next fourth candlestick is bullish. And they will make enough money using this pattern because it is a highly reliable pattern. Its accuracy almost 92% positive. When you discover this pattern in your chart, don't be emotional. Wait for the next candlestick. If you see the fourth candlestick is bullish then you open a buy position for a long time. You can make enough money using this pattern. When you see confirmation candle then you open a buy position.
Signal
This pattern gives us a strong bullish signal. Seeing this pattern, every trader or investor cancel or close their previous sell order. So the market goes up for a long time. When you seeing this pattern, if you have a sales order,plesae close it and open a buy position.
Tread :
This is the ideal pattern to order a buy position. you can open a buy position comfortably because it's a highly reliable pattern. It's accuracy 92% above
Stop Loss :
Make sure, you saw the confirmation candlestick. Setup stop loss below the confirmation bullish candlestick's. Your stop loss prices is equal to third bullish candlestick's closing price or fourth confirmation bullish candlestick's opening price.
Explain:
Stop Loss = Third bullish candlestick's closing price
OR
Stop Loss = Fourth confirmation bullish candlestick's opening price
Take Profit :
S Minimum 500 pipsAccuracy:
92 % Above PositiveCaution
Trade with support and resistance level. Don't trade during upcoming major economic news.
Trade with higher time frame
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