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Bearish Abandoned Baby
The bearish abandoned baby candlestick is an interesting name for a candle pattern. It acts as a bearish reversal often, but the price trend after the breakout is weak. Do not expect the trend to last long or be a strong one. The candle does best after an upward breakout, but is very weak after a downward one. Due to the number of identification guidelines associated with the bearish abandoned baby, this is a rare candle pattern, ranking 96th out of 103 candle types where 1 is “grains of sand on a beach” popular.
First, let me say that this is a rare candle, so some of the statistics use fewer than 20 samples (anything listed in a bear market).
Bearish Abandoned Baby: Important Results
Theoretical performance: Bearish reversal Tested performance: Bearish reversal 69% of the time Frequency rank: 96 Overall performance rank: 64 Best percentage meeting price target: 57% (bull market, up breakout) Best average move in 10 days: 5.34% (bear market, up breakout) Best 10-day performance rank: 24 (bear market, up 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. |  Bearish Abandoned Baby |
Bearish Abandoned Baby: Discussion
The bearish abandoned baby works as a bearish reversal both in theory and in reality. Testing showed that it is a bearish reversal 69% of the time, ranking 14th, which is quite high. The overall performance rank is 64, which is lousy to be blunt. The reason for this is the mediocre move after a downward breakout. Those are the ones you will want to avoid.
The best average move 10 days after the breakout is a rise of 5.34%, ranking 24th. I consider moves above 6% as good ones, so this comes close, but it also uses numbers from a bear market, so the results are likely to change, perhaps substantially.
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.
Bearish Abandoned Baby: Identification Guidelines
| Characteristic | Discussion |
| Number of candle lines | Three. |
| Price trend leading to the pattern | Upward. |
| Configuration | Look for a white candle in an upward price trend. Following that, a doji whose lower shadow remains above the prior candle’s high. The third day is a black candle with an upper shadow below the doji’s low. |
Bearish Abandoned Baby: Three Trading Tidbits
- Bearish abandoned baby candles that appear within a third of the yearly low perform best when the breakout direction aligns with the prevailing price trend (bull market/up breakout and bear market/down breakout) — page 72-73.
- Select tall candles in a bull market for the best performance — page 73.
- Look for a downward breakout in a bull market — page 76.
Bearish Abandoned Baby: Example
Candle height is not important. The second day is the doji, so called because the opening and closing prices are within pennies of each other, leaving almost no body visible except a thin line. The doji gaps above the adjacent candles. The last day in the bearish abandoned baby is a black candle. Height is not important on this one either, just as long as any upper shadow remains below the doji’s low price.
This bearish abandoned baby functions as a reversal or continuation pattern, depending on how you define the incoming price trend. The breakout is downward and price makes a long lower shadow the next day, finding support at the green line.
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