The Abandoned Baby Bottom candlestick pattern is a three candle chart formation that has a solid track record of being an accurate bullish reversal pattern.
Although it is a fairly accurate indicator of price reversing, around 70% according to Bulkowski, the Abandoned Baby Bottom pattern isn’t so easy to find on price charts. In fact, Bulkowski ranks it 93rd out 103 in terms of frequency, with 103 being the rarest pattern to find.
The first candle in this pattern formation is a large full bodied bearish candle.
The second is the most important in having a valid abandoned baby bottom. The second candlestick should be a Doji candle, and it should gap away from the wick and body of the first candle to the downside.
The third and final candle should be a bullish candle and gap up away from the Doji. The Doji should look like it’s standing on its own without any visual connection to the other two candles.
The Abandoned Baby Bottom appears in the context of a downtrend while its counterpart, the Abandoned Baby Top appears within an uptrend.
The Abandoned Baby Bottom candlestick pattern has a bullish reversal accuracy of 70%, according to Bulkowski.