What is an abandoned child line?
The abandoned child line has a small foot that is separated from the previous and subsequent candlesticks.
It is called the abandoned child line because it appears to be isolated with open windows.
If it appears in a high price range, it can be seen as a sign of a downward turn, and if it appears in a low price range, it can be seen as a sign of an upward turn. An isolated small bar is a sign that the market momentarily lost its direction.
Points to see
| Points to see | meaning |
|---|---|
| leaving the window open | Market psychology has changed significantly |
| small feet become isolated | Possibility of hesitation/turning point |
| the next leg moves in the opposite direction | Easy to confirm conversion |
| Volume increases | Increases reliability |
Points to note
The foundling line is an unusual shape, but just because it's rare doesn't mean you'll always hit it.
There may be temporary gaps due to financial results or materials, so we look at the background. The meaning of the window changes depending on whether the reason for the window is temporary or whether it is a material that is large enough to change the way you look at it.
Summary
The abandoned child line is a strong reversal candidate pattern that indicates a sudden change in market sentiment.
Look at the window, volume, and next bar as a set. The more unusual the shape, the more you shouldn't jump at it just because of the shape.