Abandoned Baby

A variation of the morning star and evening star is the pattern called the abandoned baby. The difference is that the middle session is a doji or near-doji. This is the “abandoned” session, so called due to the price gaps on either side.

The bullish version begins with a black session and is followed by a downside gap and then the doji session. Next is an upside gap and a white session. When this pattern is at proximity to support, it marks the bullish turning point; and the longer the last white session, the stronger the signal. The chart in Figure 5.25 is exceptionally strong due to the long white candle in the third day; and this was further confirmed by an even longer long white session seven trading days later.

Figure 5.25 ...

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