For experienced traders in the forex market, Abandoned Baby candlestick patterns is amarker of reversal trend. So this pattern appeared on chart technical analysis, then it means that the current price movement will turn around and give you an exact position, where the outcome is likely to benefit you. But because it is quite difficult to identify these unique formations, less experienced traders could be missed it thoughthere is the opportunity to use the pattern.
What is it?
The chart technical analysis, so you see a trend that moves down and accompanied bya big bearish canle, then chances are you've seen the candlestick patterns AbandonedBaby. In addition to giving the trader the ability to look at current market conditions,candlestick patterns Abandoned Baby indicates a rapid change of momentum of abearish market into a bullish market.
The following is an example of Abandoned Baby in the chart:
Abandoned Baby Pattern
What Kind Of His Appearance?
Abandoned Baby candlestick patterns appear to be similar to the formation pattern ofMorning and Evening Star. The decisive factor in the typical pattern is that it looks likea pattern of 3-bar where the shadow and his real body is not meant to overlapbetween bars 1, 2, and 3.
The third bar:
Bar 1 – this is a bar that moves in the direction of the main trend
Bar 2 – this is the pattern of the doji, not an overlap, and allow any gap in the direction of the main trend
Bar 3 – this is a bar that moves to the opposite of araj gap and is the first day of
The Best Thing About
Candlestick patterns Abandoned Baby Stick Pattern is very reliable. These patternsrepresent itself in the form of price action in the third and fourth days. Additional datafrom different technical indicators could strengthen the trend signal and shows the status of oversold and the increasing volume. Nevertheless, as emerged, the traderdoes not usually require further confirmation of the trend reversal would be coming.
A Remarkable Engineering
The technique of identifying candlestick patterns Abandoned Baby in any technical analysis chart is by placing the trailing stop order is a little under the pattern of doji.Doing this allows you to control the loss without affecting the potential profit, if it turns out there were failed to exit on the highest point of a movement upwards(upswing). Also, it allows you to mount a strong position when open (enter) and exit(exit) of a trading position.
