Abandoned Baby
Candlestick PatternsA rare three-candle reversal pattern where a doji gaps away from both the preceding and following candles. Bullish when at a low, bearish when at a high.
What Is an Abandoned Baby?
The abandoned baby is a rare and powerful three-candle reversal pattern. In the bullish version (at the bottom of a Downtrend), the first candle is a strong red candle. The second candle is a Doji that gaps below the first candle's low. The third candle is a strong green candle that gaps above the doji. The doji sits isolated, "abandoned" between two gaps.
The bearish abandoned baby is the reverse: it forms at the top of an Uptrend with the doji gapping above the first candle and below the third.
Why It Is Significant
The two gaps flanking the doji show a dramatic shift in sentiment. The first gap reflects momentum in the prevailing trend. The doji shows complete indecision. The second gap reverses direction entirely. This three-step sequence captures a rapid change in market consensus.
Rarity in Forex
Gaps are uncommon in the 24-hour forex market, making the abandoned baby pattern extremely rare on intraday charts. It appears more frequently at the weekly open when the market can gap based on weekend events. On EUR/USD or GBP/USD weekly charts, a genuine abandoned baby is a high-conviction signal. When you do spot one, the doji's range provides a natural stop-loss level, and the measured move of the first candle gives a minimum profit target.
Related Terms
Morning Star
A three-candle bullish reversal pattern consisting of a large red candle, a small-bodied candle (often a doji), and a large green candle. It signals the end of a downtrend.
Evening Star
A three-candle bearish reversal pattern consisting of a large green candle, a small-bodied candle, and a large red candle. It signals the end of an uptrend.
Doji
A candlestick where the open and close are virtually equal, forming a cross or plus shape. It signals market indecision and a potential reversal.