Bullish Abandoned Baby:

The Bullish Abandoned Baby is a three-day pattern that is very similar to the Morning Star. The second candle has an Open and Close that are nearly the same and is called a Doji. The first day is a Black Candle. The second day is a Doji Star that gaps down from Day One. The White Candle on day three, must gap up on the Open and the day two and three wicks must not overlap.

The significance of this pattern is that the Bears are losing strength and the Bulls are getting back in. The Doji star on the second day (and third, and fourth) reflects some indecision and the inability of the Bears to drive the price lower. A White Candle on day three that gaps up from day two would further confirm the pattern.

The Doji on the second day could indicate traders who are short are covering. But it could also simply be indecision on that day.

Remember that the Bullish Abandoned Baby pattern is known as a reversal pattern. In other words, it is more significant when it appears after a downtrend.

The Bullish Abandoned Baby pattern is quite rare.

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