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Nikita (SEBI RA)

24th Oct · SEBI-Registered Analyst

Abandoned Baby – Strong Reversal with Gap Isolation 🌙⚡

📊 The Abandoned Baby is a rare but powerful gap-based reversal pattern, signaling a complete shift in sentiment. ✅ Formation (3 candles): 1️⃣ First → A large candle in the direction of the trend (green in uptrend / red in downtrend). 2️⃣ Second → A Doji that gaps away from the first candle (no overlap). 3️⃣ Third → A strong opposite-colored candle gapping the other way, leaving the Doji “abandoned.” ✅ Meaning: Momentum exhaustion and full reversal in direction. 📌 Example: Stock rises ₹760 → ₹820, next day gaps up to ₹835 with Doji, then next session gaps down to ₹810 and closes ₹780 → Abandoned Baby → bearish reversal confirmed. 🧠 Tip: Confirm with high volume during reversal candle.

PFS

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