Something that statistically only occurs once every 5-20 years for a stock and is incredibly reliable.
The “Abandoned Baby” candlestick pattern is a super-rare three-candle pattern on a chart that screams “strong trend reversal coming!”
It looks like this:
1. A big candle going with the trend (e.g., a long red one in a downtrend).
2. Price gaps the opposite way and forms a tiny “baby” candle that doesn’t touch the first candle at all.
3. Price gaps again and a strong candle closes deep into the first candle’s body.
This perfect sequence almost never happens in stocks—only once every 3–10 years per stock, or roughly 0.02–0.08% of all trading days.
It’s 10–50 times rarer than common patterns like doji or shooting stars.
Because it’s so scarce and requires two clean gaps plus exact positioning, when traders actually see a real one, they trust it heavily.
Studies and big quant firms show it’s one of the most reliable reversal signals available.
In simple terms: it’s the market’s version of a unicorn.
Spotting a genuine Abandoned Baby is like getting a loud, trustworthy heads-up that the price direction is about to flip hard.
H/t: @matthew_sigel
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🚨Bullish reversal incoming for $MSTR‼️
Something that statistically only occurs once every 5-20 years for a stock and is incredibly reliable.
The “Abandoned Baby” candlestick pattern is a super-rare three-candle pattern on a chart that screams “strong trend reversal coming!”
It looks like this:
1. A big candle going with the trend (e.g., a long red one in a downtrend).
2. Price gaps the opposite way and forms a tiny “baby” candle that doesn’t touch the first candle at all.
3. Price gaps again and a strong candle closes deep into the first candle’s body.
This perfect sequence almost never happens in stocks—only once every 3–10 years per stock, or roughly 0.02–0.08% of all trading days.
It’s 10–50 times rarer than common patterns like doji or shooting stars.
Because it’s so scarce and requires two clean gaps plus exact positioning, when traders actually see a real one, they trust it heavily.
Studies and big quant firms show it’s one of the most reliable reversal signals available.
In simple terms: it’s the market’s version of a unicorn.
Spotting a genuine Abandoned Baby is like getting a loud, trustworthy heads-up that the price direction is about to flip hard.
H/t: @matthew_sigel