TAN, the ETF for solars, is ripping higher today and confirming the possible bullish reversal mentioned over the weekend. I discussed the possibility of a Morning Star Doji bullish reversal in the making, but what we have seen today is actually the Abandoned Baby bullish reversal pattern.
What is the difference between the two? The key point is that in the Abandoned Baby there is no overlap between the doji and the candles of the other two days. Hence, the doji, or baby, is truly “abandoned.”
Abandoned Baby patterns are rare and should be respected. Even if you do not want to chase solars up today, it would behoove you to keep them on your watchlists.
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Yeah, I find these patterns among the most difficult to interpret and, therefore, trade. The risk/reward doesn’t make sense for me here. I prefer a much smoother bottom…which we may or may not eventually get.
Well, as far as an imminent trader it is tough to trade. However, this is a rare trend reversal pattern. So, a consolidation might be an excellent entry.
D.D. Lewis, man what a performance. Best line is when he’s like “if you let me do my thing, I will blow gold all over the place”…hopefully you can use that clip at some point.
Definitely!