What it looks like
Bullish: a down candle, then a doji whose whole range (wicks included) gaps clear below it, then an up candle that gaps clear above the doji. Bearish: an up candle, then a doji that gaps clear above it, then a down candle that gaps clear below the doji. The doji is left on its own, with no overlap on either side. It needs a market that gaps, so it is rare on gold and forex and shows more on indices around the open.
What it means
The first gap shows the old side pushing hard. The doji shows that push stalling completely. The second gap shows the other side taking over so sharply that the doji is left behind. For the bullish version, sellers had been in control and this is where they were stopped; for the bearish version, buyers were stopped. It is a sign the move is tiring, not proof that it has turned.
Bullish and bearish versions
How to trade it
- 1
Make sure both gaps are real: the doji's whole range must not overlap the candles either side.
- 2
Bullish: wait for the next candle to close above the pattern's high, then buy. Bearish: wait for a close below the pattern's low, then sell.
- 3
Example: on the US30 daily chart a bearish abandoned baby spans 300 points; the sell comes on the next close below its low.
- 4
Stop just beyond the other end: below the low for a buy, above the high for a sell (about 300 to 310 points in that example).
- 5
Target the nearest swing level or 2 times the stop.
Bullish: a close below the pattern's low. Bearish: a close above the pattern's high.
Where it works best
On markets that gap, such as stock indices on daily charts, after a long move into a floor or ceiling that already mattered.
WickSpeak finds the abandoned baby automatically on any chart and names it on the candles that made it, bullish or bearish. Next to the name it writes what the pattern is, how to trade it and what proves it wrong, in plain English. In Playbook you can use the abandoned baby, or any of the 146 patterns, as a condition alongside up to 12 conditions on any of 12 timeframes, then backtest it on past candles with your own costs.
Common mistakes
- Calling it an abandoned baby when the doji's wicks overlap a neighbouring candle. That is a doji star.
- Expecting it on 24 hour markets, where real gaps are rare.
- Trading before the confirmation close.
Related patterns
Questions traders ask
Why is the abandoned baby so rare?
It needs two clean gaps, one either side of the doji. Markets that trade around the clock, such as gold and forex, rarely gap between candles, so the pattern mostly shows on indices and shares.
What is the difference between an abandoned baby and a morning star?
In a morning star the middle candle is small and sits low but can overlap its neighbours. In a bullish abandoned baby the middle candle is a doji that does not overlap either neighbour at all.
How do you trade a bullish abandoned baby?
Wait for the next candle to close above the pattern's high, then buy with a stop just below the pattern's low. A close below that low proves it wrong.
Is the abandoned baby a reversal pattern?
Yes. Both versions appear at the end of a move and show it tiring. It is not proof the move has turned, which is why it still needs a confirmation close.