The Abandoned Baby is a bullish reversal candlestick pattern that signals a potential trend reversal from a downtrend to an uptrend. It is characterized by three candles:

* First Candle : A large bearish (red) candle that closes significantly lower than the previous day, indicating strong selling pressure.
* Second Candle : A doji candle, which gaps down from the first candle and represents indecision in the market.
* Third Candle : A large bullish (green) candle that opens above the doji’s close and closes above the first candle’s open, indicating strong buying pressure.

The Abandoned Baby pattern suggests that the sellers have exhausted their momentum, and the buyers are starting to take control, signaling a potential bullish reversal.

How Traders Use It:
* Entry Point : Buy when the third candle closes above the first candle’s open.
* Stop-Loss : Place it below the low of the doji (second candle) to manage risk.
* Target Price : Use previous resistance levels or set targets based on risk-to-reward ratios.

The Abandoned Baby pattern is most effective when it occurs after a downtrend , indicating a potential trend reversal to the upside.