Abandoned Baby Top is a three bar bearish trend reversal Candlestick pattern which is more similar to Evening Star. It is more reliable, when it occurs in the sharp raise or in uptrend. The candle body & shadows will not overlap between first & second bars and second & third bar. This pattern reorganize the shift in momentum from bulls to bears.
In western world, the Abandoned Baby Top is also called as Island Top reversal.
It represents the fight between the buyers and sellers and eventually the sellers win it. Starting of the pattern, the buyers will have momentum by creating the gap up. They will lose the momentum in the next day by creating the gap down. Literally there will be a territory where there was no trade happened.
In western world, the Abandoned Baby Top is also called as Island Top reversal.
Structure of Abandoned Baby
- The first candle will be in the bullish or more bullish signal.
- The second candle will have gap up opening and will close above first candle's high.
- Third candle will have gap down opening and close below second candle's low.
It represents the fight between the buyers and sellers and eventually the sellers win it. Starting of the pattern, the buyers will have momentum by creating the gap up. They will lose the momentum in the next day by creating the gap down. Literally there will be a territory where there was no trade happened.