Understanding and Characteristics of Bullish Abandoned Body Chandlesticks

 What is Abandoned Body Bullish Chandlestick?

A bullish abandoned body candlestick is a candlestick pattern that provides a trading signal that there is a high probability that the price will move up. For this chandlestick, it has similarities with other chandlestic patterns. Like the bullish morning doji star, this candlestick is included as a candlestick pattern that has high accuracy, so that in using it we don't need to use confirmation. Look at the picture below, to understand the blllish abandoned body chandlestick pattern.

Bullish Abandoned Body
Bullish Abandoned Body

As we can see from the picture above, that there is a chandlestick in the shape of a doji,then there is a gap between the doji candlestick and the one above it. Some may ask why it happened like this? We can assume that the formation of this candlestick pattern occurs in daily time.

On the first day, there was a chandlestick pattern that had a long body in red. This candlestick tells us that the bearish candlestick is strongly attacking, from that we can predict that for tomorrow the bearish candlestick will still dominate. In other words, it is predicted that there will still be a decline in prices for the next day.

It turns out that the next day the bearish candlestick still dominates over the bullish one. This is indicated by the gap that occurs between the red bared chandlestick and the doji chandlestick.In this case, there was indeed a very strong and significant price decline, but the doji candlestick gave us information that after that the bearish candlestick looked weak.

Then we see that, the doji candlestick illustrates that the bullish candlestick is starting to appear. Here most likely the bullish candlestick will start to offset the bearish candlestick. In this case, we can expect that for the next day, bullish candlesticks will dominate over bearish candlesticks.This means most likely the price will rise for the next day.

And it turns out that on the second day it was confirmed on the third day. On the third day, we can see, a chandlestick with a green trunk has a significant length formed.This tells us that the bearish candlestick is already weak, so the bullish candlestick is getting stronger.From here we can know that the bullish chandlestick will dominate for the next days. But the bullish candlestick is not as strong as the bearish one on the first day

The chance of something like this happening is very clear, because there is confirmation in it. There we can start buying without waiting for confirmation, we buy data after this (bullish abandoned baby) pattern is formed on a market movement chart. But if it's still possible, it's better if we try to suppress the risk even smaller. Like what I've said here ( The 5 Most Accurate Chandlestick Patterns - For Trading)


Therefore, even though the bullish abandoned baby chandlestick pattern has occurred, it would be nice if we wait for another confirmation, so we have two confirmations. In this case, it is true that the bullish candlestick has dominated the current market situation, (shown by the blue bar on the third day). 

So in this case, we should wait for confirmation before making a purchase. We are waiting for the closing price which is higher than the opening day which occurred on the first day.

Post a Comment for "Understanding and Characteristics of Bullish Abandoned Body Chandlesticks"