Abandoned Baby Pattern
Overview
The abandoned baby is a rare three-candle reversal pattern considered one of the most reliable candlestick signals. It forms when a doji gaps away from the preceding candle and the following candle gaps in the opposite direction, leaving the doji isolated with gaps on both sides. The pattern indicates a dramatic shift in market sentiment where momentum completely reverses between sessions.
Key Concepts
A gap must exist on both sides of the central doji candle, separating it from the candles before and after. The bullish version appears at the bottom of a downtrend with a gap-down doji followed by a gap-up bullish candle. The bearish version appears at the top of an uptrend with a gap-up doji followed by a gap-down bearish candle. This pattern is extremely rare in twenty-four-hour crypto markets because gaps require a session close. Volume typically spikes on the third candle as new participants enter.
Entry Signals
Enter on the close of the third candle confirming the reversal direction. Gap confirmation on both sides of the doji is mandatory. Look for the pattern at major support or resistance levels for added confluence. Volume should noticeably increase on the confirmation candle.
Exit Signals
Stop beyond the doji's extreme wick on the trend side. Target a measured move equal to the height of the prior trend leg. Exit if the gap between the doji and the third candle fills completely. Partial profit at the nearest significant structure level.
Best Timeframes
Daily, Weekly
Pro Tips
Because crypto markets trade continuously, the abandoned baby is more commonly found in traditional equity and commodity markets with session gaps. In crypto, look for near-gap equivalents during low-liquidity periods. When this pattern does appear, its rarity makes it a very high-conviction signal.
More Topics in This Category
Marubozu
A marubozu is a candle with no wicks (or very small wicks) — the open and close are at the extreme ends. A bullish marubozu opens at low, closes at high. A bearish marubozu opens at high, closes at low. Marubozus represent maximum conviction and can signal the start of a strong momentum move.
Tweezer Tops & Bottoms
Tweezers are two-candle patterns where both candles test the same high (tweezer top) or low (tweezer bottom). The first candle extends the trend and the second candle reverses. The matching highs/lows create a visual 'tweezers' shape indicating a rejection level.
Piercing Line & Dark Cloud Cover
The piercing line is a two-candle bullish reversal pattern where a down candle is followed by an up candle that opens below the prior low and closes above the midpoint of the prior body. The dark cloud cover is its bearish counterpart — an up candle followed by a down candle that opens above the prior high and closes below the midpoint. Both patterns signal a potential shift in sentiment when they appear at key support or resistance levels.
Continuation Triangles
While not strictly a candlestick pattern, continuation triangles (ascending, descending, symmetrical) are multi-candle patterns where price contracts between converging trendlines. Breakouts from triangles tend to continue the prior trend. Triangles are measured-move patterns — the target equals the height of the triangle projected from the breakout point.