What is an abandoned baby?
The Abandoned Baby is the Gap version of the Morning Star and is one of the rarest and most powerful reversal signals among the three-rod patterns.
Unlike the regular Morningstar, the 2nd candle (Doji) is completely separated from the 1st and 3rd candles by a gap (price gap). Like a baby left alone by its parents.
Bullish Abandoned Baby 🟢
condition
| Conditions | standards |
|---|---|
| Appearance location | After a downward trend |
| 1 bag | big black candle |
| 2 bags | Doji candle after gap down (separated into 1 candle and gap) |
| 3 bars | Gap-up followed by a large candlestick (separated into 2 candles and a gap) |
Difference from regular Morningstar:
- Morningstar: No gap OK
- Abandoned baby: There must be a gap on both sides of the 2nd pole
Price Meaning
After the intraday selling force was completely exhausted and gapped down, the (Doji) buying force I came up with a gap up. It represents a complete defeat of the selloff.
Bearish Abandoned Baby 🔴
condition
1st candle: Big candle 2nd bar: Gap up and then doji 3rd candle: Gap down followed by a large black candle
Rising is a perfect mirror image of an abandoned baby.
Reliability: Top level
Abandoned babies:
- Doji (Perfect Balance) + Gap (Power Shift) Combination
- Gaps are common in the stock market, but rare in the coin market as there are no weekend gaps
- Highest reliability due to low frequency of occurrence
| pattern | Reliability | frequency |
|---|---|---|
| Morning Star | ⭐⭐⭐⭐ | mid price |
| Abandoned Baby | ⭐⭐⭐⭐⭐ | Very Low |
Futures Trading Strategy
Rising Abandoned Baby Long Strategy
Entry: 3rd candle (big candle) closing price
Stop Loss: Below the low point of Doji (2 bars)
Target: 1 bar opening price or higher (full retracement)
Leverage: 5 to 10 times possible due to high reliability
Caution: Gaps are very rare in the coin market.
It looks like a gap, but in reality, it is often a very short candle.
Be sure to check if it is an actual gap (space)