Monday, March 22, 2021

A Potential Bullish Abandoned Baby in the Making

This Investopedia article describes a bullish abandoned baby with the following characteristics:

1. It is a pattern consists of three price bars that indicate a trend reversal.

2. The first price bar is red showing a huge sell-off.

3. The second price bar is a doji formed from a gap down indicating indecision.

4. The third price bar is green showing that the bulls have regained control.

5. However, some technical analysts allow variations in this pattern such as:

        a. The doji did not gap down

        b. The appearance of more than one doji



If PSEi will have a green price bar tomorrow, that will complete the pattern and that would signal that the current sell-off is about to reverse.  


How about $BSC, $PHA, and $APL? Though their price bar today isn't a doji, could they pass the test of variations?






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