The Abandoned Baby Bottom refers to a bullish reversal pattern. This pattern appears in a downtrend and signals the potential end of the bearish move along with the start of a new uptrend.
The pattern consists of three candles and is formed as follows –
The first candle is a long red candle or a bearish candle indicating a strong downtrend.
The second candle is a Doji candle, which is a candle with little or no real body along with long upper and lower shadows. This Doji candle is formed when the opening and closing prices are nearly equal indicating a potential change in direction.
The third candle is a white candle or a bullish candle which opens below the close of the Doji candle and closes above the midpoint of the first red candle.
The Abandoned Baby Bottom pattern is considered a bullish reversal pattern as it suggests that the bears have lost control and the bulls have taken control of the market. Also, the long red candle represents the bears driving the price down. The Doji candle represents indecision and potential change in direction. Also, the white candle confirms the change in direction as the bulls push the price higher.
A PPF calculator is an online tool that helps you calculate the maturity amount at…
Non-resident Indians are not allowed to open a new PPF account. However, if a resident…
PPF rules do not allow joint accounts. An account can only be opened in the…
After the maturity of the PPF account, you have the option to extend it for…
From the 7th financial year onwards, you can make partial withdrawals from your PPF account.…