The bearish abandon baby pattern is also known as a bearish reversal pattern. It is a pattern that forms at the end of
an uptrend and indicates that there is a potential downtrend. The bearish abandon baby pattern is nothing more than the opposite of the bullish abandon baby pattern. It also consists of 3 candle components;
The main psychology behind the formation of the bearish abandon baby candle pattern is that, on the daily chart, the first large body bearish candle which opens low and closes high shows that the sellers are still in control. The second candle on the next day which forms as a Doji or a small body candle with a big gap away from the first-day candle shows that there is indecision between buyers and sellers. The third candle on the next day which forms with a large body bullish candle shows that buyers are about to take control.
The abandoned baby pattern is renowned for being a very rare pattern that is very difficult to find, however, it has a very good track record of signalling a trend reversal. When the abandoned baby pattern is found, it has a percentage success rate of about 80% on average and is regarded as a very powerful trend reversal signal.
