As of 08/22/2019
  Indus: 26,252 +49.51 +0.2%  
  Trans: 10,073 -34.32 -0.3%  
  Utils: 841 +0.59 +0.1%  
  Nasdaq: 7,991 -28.82 -0.4%  
  S&P 500: 2,923 -1.48 -0.1%  
YTD
 +12.5%  
 +9.8%  
 +17.9%  
 +20.4%  
 +16.6%  
  Targets    Overview: 08/15/2019  
  Up arrow27,200 or 24,900 by 09/01/2019
  Up arrow10,700 or 9,550 by 09/01/2019
  Up arrow850 or 790 by 09/01/2019
  Up arrow8,200 or 7,400 by 09/01/2019
  Up arrow3,000 or 2,750 by 09/01/2019
As of 08/22/2019
  Indus: 26,252 +49.51 +0.2%  
  Trans: 10,073 -34.32 -0.3%  
  Utils: 841 +0.59 +0.1%  
  Nasdaq: 7,991 -28.82 -0.4%  
  S&P 500: 2,923 -1.48 -0.1%  
YTD
 +12.5%  
 +9.8%  
 +17.9%  
 +20.4%  
 +16.6%  
  Targets    Overview: 08/15/2019  
  Up arrow27,200 or 24,900 by 09/01/2019
  Up arrow10,700 or 9,550 by 09/01/2019
  Up arrow850 or 790 by 09/01/2019
  Up arrow8,200 or 7,400 by 09/01/2019
  Up arrow3,000 or 2,750 by 09/01/2019

Bulkowski's Bullish Abandoned Baby

 

My book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the left, takes an in-depth look at candlesticks, including performance statistics.

If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

-- Tom Bulkowski

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The bullish abandoned baby candlestick pattern is a bullish reversal with a good track record of reversing (ranking 13th). There is just one problem. You won't be able to find it. The candle is rare with a frequency rank of 92nd out of 103 candle types. When you can find it, and assuming price breaks out downward, you can make some change. However, the bear market numbers have fewer than 20 samples, so the performance is not likely to stand up.

Important Results
Discussion
Identification Guidelines
Three Trading Tidbits
Example
See Also

Bullish Abandoned Baby Important Results

Theoretical performance: Bullish reversal
Tested performance: Bullish reversal 70% of the time
Frequency rank: 92
Overall performance rank: 9
Best percentage meeting price target: 71% (bear market, down breakout)
Best average move in 10 days: -10.31% (bear market, down breakout)
Best 10-day performance rank: 1 (bear market, down breakout)

All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts.

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

The ideal bullish abandoned baby candlestick
Bullish Abandoned Baby
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Bullish Abandoned Baby Discussion

The bullish abandoned baby acts as a bullish reversal 70% of the time, which is very good, if you can find the candle to trade, that is. I located just 293 examples out of 4.7 million candle lines, and I checked every adoption center in the state!

The best average move 10 days after a breakout is a drop of 10.31% in a bear market. Since I consider moves of 6% or higher to be good, this one is a barn burner. Unfortunately, it is based on just 14 candle patterns. That means it is unreliable and likely to change. However, such a large drop in 10 days gives the candlestick a performance rank of 1 -- first place. Yippee!

Bullish Abandoned Baby Identification Guidelines

CharacteristicDiscussion
Number of candle linesThree.
Price trend leading to the patternDownward.
ConfigurationLook for the bullish abandoned baby in a downward price trend and find a black candle as the first day. Following that, a doji should appear that gaps below the two adjacent candle shadows. The last day is a white candle with a lower shadow that remains above the top of the doji.

Three Trading Tidbits for Bullish Abandoned Baby

If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.

  1. Bullish abandoned baby candles that appear within a third of the yearly low perform best after an upward breakout (but samples are few so this result might change) -- page 83.
  2. Select tall candles for the best performance -- page 83.
  3. Bullish abandoned babies form at the end of short down trends -- page 84-86.
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Bullish Abandoned Baby Example

The bullish abandoned baby candlestick on the daily scale

The chart shows a bullish abandoned baby circled in red on the daily scale. Price trends downward for a few days before the candle pattern begins.

The first day is a black candle of any shape -- wide, tall, who cares? The next day is the doji. A doji is a candle line in which the opening and closing prices are within pennies of each other. The final day is a white candle. There must be a price gap between the top of the doji and the surrounding two candles, like that shown in the figure.

Since the price trend leading to this bullish abandoned baby is downward and the breakout is upward, this candle acts as a reversal. An upward breakout is when price closes above the top of the pattern. A downward breakout would be a close below the bottom of the three-line pattern. Notice that the upward price trend after the bullish abandoned baby does not last long.

-- Thomas Bulkowski

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See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:      New                  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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