Bullish Abandoned Baby
Bearish Abandoned Baby | Bearish Engulfing | Bearish Kicking | Bullish Abandoned Baby | Bullish Engulfing | Bullish Kicking | Dark Cloud Cover | Evening Doji Star | Evening Star | Falling Three Methods | Identical Three Crows | Morning Doji Star | Morning Star | Rising Three Methods | Three Black Crows | Three Inside Down | Three Inside Up | Three Outside Down | Three Outside Up | Three White Soldiers |
Reliability: high
Identification
A long black day is followed by a Doji that gaps in the direction of the trend. Then a white day occurs gapping in the opposite direction with no overlapping shadows.
Psychology
In a downtrend or within a pullback of an uptrend, the market gaps down but does not continue its downward movement. Instead enough bulls step up to bring supply and demand back into equilibrium and the stock churns in place. This isn't necessarily bullish, but it's certainly less bearish. The pattern is confirmed by the next day's gap up and rally.
The bullish Abandoned Baby formation doesn't occur too often and is similar to the bullish Doji Star, bullish Morning Star, and the bullish Morning Doji Star.