Abandoned Baby

The Abandoned Baby is a rare three‑candle candlestick pattern that signals a potential reversal in price direction. It forms when a doji (a candle with a tiny real body indicating indecision) gaps away from the preceding candle and the following candle, leaving a visible space (or “gap”) on both sides of the doji. The first candle is typically a strong bullish or bearish bar, the doji shows market hesitation, and the third candle moves decisively in the opposite direction, confirming the shift in sentiment.

Because the gaps reflect a sudden change in market participation, the Abandoned Baby is considered a high‑probability reversal signal, especially when it appears after a prolonged trend and is supported by volume. For example, after a downtrend, a bearish candle, a doji that gaps lower, and then a bullish candle that gaps above the doji’s high can indicate the start of an upward move, prompting traders to consider long positions or tighten stop‑losses on shorts.