The Abandoned Baby is a rare three-candle reversal pattern and one of the most powerful signals in candlestick analysis. It requires a Doji that gaps away from both the preceding and following candles — literally "abandoned" with space on both sides. Its rarity makes it extremely significant when it does appear.
Pattern Diagram
Why the Abandoned Baby is So Powerful
The Doji represents a day of complete indecision. The gap below (from Day 1) shows sellers exhausted. The gap above (to Day 3) shows buyers rushed in overnight. The Doji sits alone — abandoned by both parties — marking the exact turning point.
Identification Requirements
- Day 1: Large candle in direction of existing trend
- Day 2: Doji that gaps away from Day 1 (cannot touch Day 1 range)
- Day 3: Large candle in opposite direction that gaps away from Day 2
- All three candles must have clear gaps between them — no overlap at all
On NSE stocks, true gaps (no overlap including wicks) are rare due to auction mechanisms. The Abandoned Baby is most commonly seen after major news events, quarterly results, or during high-VIX periods when overnight gaps are substantial.
Trading the Abandoned Baby
Entry: Open of Day 4 (the reversal is confirmed by Day 3 close)
Stop Loss: Below the Doji low (bullish) or above the Doji high (bearish)
Target: Major prior support/resistance — this pattern often precedes significant moves
No additional confirmation needed — the gap requirements make this self-confirming
Stop Loss: Below the Doji low (bullish) or above the Doji high (bearish)
Target: Major prior support/resistance — this pattern often precedes significant moves
No additional confirmation needed — the gap requirements make this self-confirming
