Courtesy of Market Tamer
- A three line pattern with the first candle moving bullishly in the direction of the predominant trend.
- The stock gaps up in the second session and trades in a very tight range at the top of the trend with no overlapping of wicks from the prior session.
- The final candle gaps down and trades well into the real body of the first candle, ideally on increase volume as the bears begin to push the stock down.
- This pattern is very similar to an evening star; however the difference is the magnitude of the gaps between the first and second session and the second and third session. The "Abandoned Baby" depicts the separation of the second candle from the first and third candles and in fact appears to be "Abandoned".
- This is an extremely powerful and infrequent formation that rarely fails to produce results.
Curves Ahead, Use Your Brakes
We will likely get a short term relief rally and then fade as we encounter numerous fundamental headwinds. The market could channel for a bit at this level and then begin to drift lower. For more information, please visit Options Revolution.
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