Simple Strategy to Trade Cryptocurrencies following the Bullish Abandoned Baby Pattern
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Assalam-o-Alaikum Steemians !
I'm @moneyster, a professional level Cryptocurrency investor and an analyzer. As usual, today I thought to share another Crypto-related experience with you. I hope this article will be considerably beneficial for all the Steemians in this community
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Bullish Abandoned Baby Pattern can be defined as a strong Trend reversal pattern that occurs in a downtrend. It means, after showing this Bullish Abandoned Baby Pattern in the chart, we can expect a considerable trend reversal in the chart from a downtrend to an uptrend.
This Bullish Abandoned Baby Pattern basically consists of 3 candles to accomplish a proper Bullish Abandoned Baby Setup in the chart. Then, the first candle should be a strong bearish candle and the next candle should be a Doji candle. After these two candles, a strong bullish candle should be formed in the chart to identify a successful Bullish Abandoned Baby Pattern. Here the most important thing is that this Doji candle should be gapped below both bearish and bullish candles.
This Bullish Abandoned Baby Pattern looks quite similar to the Morning star candlestick pattern. But the lower Doji candle is placed with a gap below the candles in this Bullish Abandoned Baby Pattern. That is the main difference in this Bullish Abandoned Baby Pattern as compared to the Morning star candlestick pattern.
After the appearance of this Bullish Abandoned Baby Pattern, we can easily take our buy entry when the next candle breaks above the first candle of this Bullish Abandoned Baby Pattern. At the same time, we can easily set our stop-loss point to the lower wick of the Doji candle as a proper risk management method.
Bullish Abandoned Baby Pattern is quite a rare and highly profitable candlestick pattern as compared to many other candlestick patterns. It means that even if we can't see this Bullish Abandoned Baby Pattern everywhere in the chart, we can take confirmed trading opportunities with the help of this Bullish Abandoned Baby Pattern. As this Bullish Abandoned Baby Pattern consists of a gapped Doji candle, we can easily identify this candlestick pattern quickly. Therefore, we have the ability to take quick entries and quick results in the desired market. At the same time, here the risk management method is very easy and the reward ratio is much greater than the risk.
First of all, I will open BTC/USDT chart using the TradingView platform. Then we need to find the proper Bullish Abandoned Baby Pattern using the candlestick chart which consists of 3 candles one strong bearish candle, a Gapped Doji Candle and a strong bullish candle.
Here the next candle after the Bullish Abandoned Baby Pattern should be another bullish candle and it should break the Upper wick of the first candle of the Bullish Abandoned Baby Pattern to take our entry. I will further demonstrate it through the BTC/USDT chart.
Below I have demonstrated the Bullish Abandoned Baby Pattern as a result of a buy setup. Here we can see there are 3 candles that have been traded following the Bullish Abandoned Baby Pattern and the next candle has been traded above the upper wick of the 1st candle of the Bullish Abandoned Baby Pattern. Then we can take our buy entry with the help of this trading setup. At the same time, we will be able to set the stop loss point by using the Lower wick of the Doji candle of the Bullish Abandoned Baby Pattern.
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In this way, we can easily use the Bullish Abandoned Baby Pattern to get better and more accessible trading opportunities. However, we can try to combine this strategy with some other indicators to increase the winning percentage.
At the same time, as I said in my previous article, we should remember that all the indicators and strategies are not efficient completely as nothing we can find 100% efficient in the world. So, we should depend only on these strategies and indicators to confirm our trading opportunities.
I have studied the below-sourced articles to study these topics further, and I have explained all the above facts in my own words and experience.
10% benificiary set for @tron-fan-club
You shared another important and good analytic post for all of us dear.
Thank you very much for your feedback on my article. It means a lot to me.
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Wow great, I think that really a good strategy to used in scalp trading specifically and I think it can also be adopted in leverage trading as well. Just my thought. By the way thanks so much for this tutorial
Definitely, it works well in scalp trading and I have personally back-tested it in my own charts. Thanks a lot for visiting my article.
You are welcome.
Have a nice discussion about the Candlestick Pattern of Cryptocurrency. After reading your post, I came to know something about the technical analysis of Candlestick.
Really happy to see such detailed comments on my article which encourages me to do such more creations here. Stay tuned with me to read more articles.
Informative article
Thank you very much for the great feedback on my article. You are correct this should be informative because these candlestick patterns are quite uncommon in crypto charts.
You are doing well in your analysis. You keep brining up different strategies daily.
Keep it up
Thank you very much for your valuable feedback. I always try to do my best when writing articles.
Wow who would have thought that the candle patterns itself have been assigned special names. The name is kind of funny but I get the picture clearly. Thank you so much for this lecture
Thank you very much for your detailed response to the article. Yeah, the name loos funny but it performs well in the Market.