The Abandoned Baby is a reversal Japanese candlestick pattern consisting of three candles: one doji and two candles with bodies. There is a gap both before and after the doji. The shadows of the doji must completely gap above or below the shadows of the first and third candles.

There are two variations of the Abandoned Baby pattern: the Bullish Abandoned Baby and the Bearish Abandoned Baby. This pattern is relatively rare, as the price movements must fulfill specific criteria to form it.

To identify a Bullish Abandoned Baby pattern, the following criteria must be met:

• A large black (or red) candlestick must be present in a downtrend.
• The black candle should be followed by a doji that gaps below the close of the first candle.
• The final candle in the three-candle sequence must be white (or green) and open above the doji.

For a Bearish Abandoned Baby pattern, the criteria are as follows:

• A large white (or green) candlestick must be present in an uptrend.
• The white candle should be followed by a doji that gaps above the close of the first candle.
• The last candle in the three-candle sequence must be black (or red) and open below the doji.

It is crucial that there are gaps between the first and second candles, as well as between the second and third candles. The neighboring candles must not overlap; if they do, the pattern is classified as a Morning Star or Evening Star candlestick pattern.

The Abandoned Baby is a reversal pattern. Following a strong uptrend or downtrend, there is a pause, representing a moment of uncertainty (illustrated by the doji). Subsequently, the momentum shifts abruptly. If there was an uptrend prior, the bears take over and drive the price down. Conversely, if there was a downtrend, the bulls gain control and push the price up. This swift change indicates a significant reversal. The larger the gaps, the more pronounced the reversal.