What is a Bearish abandoned baby’
Bearish abandoned baby is a type of candlestick pattern traders identificireba to a signal of reversal of the current trend. This pattern is formed when a doji preceded by a white candle with a lower closing price and is followed by a red candle with a lower opening price. Thus, the candle is a doji can be an important signal for the trader to identify either bearish or bullish trend.
The penetration of ‘Bearish abandoned baby’
Bearish abandoned baby may be a signal for a reversal of the downward trend in prices of securities. Negative, bullish abandoned baby may be a signal for uptrend reversal in the value of securities. How to identify bearish and bullish abandoned baby patterns it is important to understand three types of candles: white candle, red candle and doji. Each Type of candle represents the trading activity for one full day the securities of the cycle.
White candlestick: white candle occurs when the security price closes above its opening. These candles are usually white or green on the chart.
Red candle: the red candle appears when the security price closes below its open. This type of candles are usually black or red on the trading chart.
Doji: there is a doji candlestick, when the security has the same open and close price. This usually will be submitted to the dash on the chart.
Bearish Abandoned Baby Pattern
Bearish abandoned baby reported when the technical and security charts white candle follows a doji with higher opening/closing price previous day’s closing, and then a red candle with a lower open prices compared to the doji. This pattern often leads to a downward reversal. Thus, the bearish abandoned baby pattern can be a signal to sell or to sell a security to profit from falling prices.
Bearish abandoned baby can be a rare but reliable candlestick patterns. This is because the candle “doji” are not particularly common, given the high volumes that most of the securities report during the trading day. Market traders also suggest that the accuracy of the bearish abandoned baby reversal signal is greatly improved when it is used in combination with other technical indicators such as moving average convergence-divergence (MACD) and relative strength index (relative strength index) to confirm the reversal.
Bullish Abandoned Baby Pattern
The opposite of the bearish abandoned baby is a bullish abandoned baby. These patterns also occurs over three days and includes the doji. Bullish abandoned baby pattern will have red candle, then a doji with a lower opening/closing price previous day’s closing, and then the white candle is higher than the opening price, what is the doji.