Leavitt Brothers: Education - CandleStick Patterns

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	Abandoned Baby
	Belt Hold
	Breakaway
	Concealing Baby Swallow
	Doji Star
	Dragonfly Doji
	Engulfing
	Gravestone Doji
	Hammer
	Harami
	Harami Cross
	Homing Pigeon
	Inverted Hammer
	Kicking
	Ladder Bottom
	Mat Hold
	Matching Low
	Meeting Lines
	Morning Doji Star
	Morning Star
	Piercing Line
	Rising Three Methods
	Separating Lines
	Side by Side White Lines
	Stick Sandwich
	Three Inside Up
	Three Line Strike
	Three Outside Up
	Three Stars In the South
	Three While Soldiers
	Tri Star
	Unique Three River Bottom
	Upside Gap Three Methods
	Upside Tasuki Gap

Abandoned Baby

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Pattern: reversal
Reliability: high

Identification
A long black day is followed by a Doji that gaps in the direction of the trend. Then a white day occurs gapping in the opposite direction with no overlapping shadows.

The Psychology
In a downtrend or within a pullback of an uptrend, the market gaps down but does not continue its downward movement. Instead enough bulls step up to bring supply and demand back into equilibrium and the stock churns in place. This isn't necessarily bullish, but it's certainly less bearish. The pattern is confirmed by the next day's gap up and rally.

The bullish Abandoned Baby formation doesn't occur too often and is similar to the bullish Doji Star, bullish Morning Star, and the bullish Morning Doji Star.

GENZ fell and churned along the 20 level to establish support. It then formed a bullish Abandon Baby pattern which began its reversal of the downtrend. If this pattern formed as the first set of candles at 20, it is less likely a reversal could have immediately occurred, but since the Abandon Baby formed after the stock was able to establish support, the play to the long side became more reliable.

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