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  • Abandoned Baby Top Reversal Pattern

Abandoned Baby Definition:
An Abandoned Baby Top is a rare bearish three bar reversal pattern that develops after an up leg. This pattern begins with an up gap followed by a doji or similar smaller candlestick. A down gap then occurs on the next bar leaving the doji "abandoned" at the high.

Background:
In the classic version of this pattern, the doji bar shadows are completely above the shadows of the first and third bars of this candlestick pattern. The two gaps in this pattern are often called "open windows."

Practical Use:
Technical analysts often use Abandoned Baby Tops as a sell signal. Additional confirmation in the form of a bearish tradable setup is often needed before the trader will open a short position.

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