Abandoned Baby
This pattern can take two different forms:
Bullish abandoned Baby
Shorters are in a strike of consecutive attacks (the price is going down), then
Candle 1: one large bear attack is observed,
Candle 2. but energy runs low, with only a very small bear candle to follow (The poor abandoned baby),
Candle 3. weakness is observed by the longers, and they attacks heavely in return.
According to Bulkowski, 49.73% of the times this pattern will result in a price increase.
Think about this pattern as an war by a the bears/shorters that runs out of full.
Figure 5.16: Bullish abandoned Baby
Here is an example:
Figure 5.17: Bullish abandoned Baby
