Bearish Abandoned Baby

This Pattern signals a : Reveral
Reliability of this candlestick pattern: High



How to Identify:
Three candles are involved in forming this pattern. On a daily chart, here's how it will unravel:

1. 1st day is a bulls day (white candle)
   
2. 2nd day is undecisive day (doji) day - here the shadows of this day are above the first day.
   
3. 3rd is bears day (black candle) with no overlapping shadows
   

In the best setup - the shadows of doji should completely gap above the shadows of the first and third day.

Market Psychology:
Bulls were ruling on the first day and the second day's opening gap encourages them more - however, the Bulls having seen good profits start taking them off the market - pushing the close of the day near the open - thus forming a doji.

However, the third day open reveals that the second day was more of an indecision by the bulls to push their agenda - that gives bears the upper hand with the opening gap of the second day and thus the bears take over the market.

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Global Forex TradingGlobal Forex trading is a market that is linked throughout the entire world through a web of banks, corporations and independent investors. Because of this world wide market, global Forex trading relies on the fluctuations of currencies in every country. Having dealers in almost every time zone, including London, New York, Sydney, Hong Kong and Tokyo, a trade can be made anywhere at any hour. The keys to trading are contingent on many factors. With such a large network, global Forex trading is executed based on the economical, political and psychological factors of countries and of investors. How These Factors WorkAs always, the economic changes caused by unemployment, inflation and interest rates, play a large role in the rate a currency is at. It is crucial to watch and even anticipate these changes when choosing a trade, hoping that the rate of the currency you buy will increase after your trade. Alterations in a country's economic standing is one factor that must be expected, because it is this expectation that often changes the rate before the economic conditions even alter. Another anticipation that is significant is the mentality of other investors and their reaction to changes. The reactions of traders to the market must also be predicted because, usually large numbers of investors will make similar moves and affect the market.