An abandoned baby is a candlestick pattern that signals the possible bottoming-out of an asset that’s been trending downwards. They’re essential to traders because they indicate trend changes, marking the end of a downtrend and the beginning of a new move higher.
Abandoned babies form while the price is still falling and are used by traders to identify a possible reversal point.
There are three parts to a discontinued baby pattern. Firstly you have a large down candle, this is followed by a Doji, and finally, you have a sizeable up candle that opens above the Doji (in other words gaps-up).