捨て子弱気型 Complete Guide

According to Bulkowski's research, the Abandoned Baby pattern has a relatively high failure rate. Its reliability varies significantly depending on market conditions, the specific stock, and the size of the gaps. Confirmation on the third day is crucial.

The gaps represent a significant shift in market sentiment. The first gap down shows a sudden loss of bullish momentum, and the second gap down confirms the emergence of strong bearish pressure.

While a Doji is the ideal formation, a small-bodied candlestick can also be considered, but the signal strength is reduced. The smaller the body, the better.

Ideally, volume should be high on the first bullish candlestick, low on the Doji (indicating indecision), and then increase again on the third bearish candlestick, confirming the downward move. A lack of increasing volume on the third day weakens the signal.

There is no specific target. Conservative traders often wait for price to break below the low of the third candlestick before entering a short position. A stop-loss order can be placed above the high of the Doji.