AbandonedBaby

Description

An Abandoned Baby pattern is a Morning or Evening Star in which the star, or center candlestick, gaps away from both the preceding and following candlesticks. Such a star is considered major reversal pattern. The Abandoned Baby pattern is extremely rare.

Formula

AbandonedBaby(INPUT,Stringency=5,LRRange=10,LRType=3,SmallForm=10)= begin

  retval = NONUM

  targetBar = 0

  pnt0 = targetBar

  pnt1 = targetBar + 1

  pnt2 = targetBar + 2

  ppClose = GetPrice($1, BATE_CLOSE, pnt2, 0)

  ppHigh = GetPrice($1, BATE_HIGH, pnt2, 0)

  ppLow = GetPrice($1, BATE_LOW, pnt2, 0)

  pHigh = GetPrice($1, BATE_HIGH, pnt1, 0)

  pOpen = GetPrice($1, BATE_OPEN, pnt1, 0)

  pClose = GetPrice($1, BATE_CLOSE, pnt1, 0)

  pLow = GetPrice($1, BATE_LOW, pnt1, 0)

  cOpen = GetPrice($1, BATE_OPEN, targetBar, 0)

  cHigh = GetPrice($1, BATE_HIGH, targetBar, 0)

  cLow = GetPrice($1, BATE_LOW, targetBar, 0)

  if BlackBody($1, pnt0) == TRUE then begin

    if WhiteBody($1, pnt2) == TRUE then begin

      if pLow > ppHigh then begin

        if cHigh < pLow then begin

          if SmallRealBody($1, pnt1, SmallForm) then begin

            if Stringency >= 5 then retval = '5'|clr_red|above|ftiny|arrow|vertical

            if DojiForm($1, pnt1) then begin

              if Stringency >= 4 then retval = '4'|clr_red|above|ftiny|arrow|vertical

              if cOpen < pLow then begin

                if Stringency >= 3 then retval = '3'|clr_red|above|ftiny|arrow|vertical

                if LongWhiteForm($1, pnt2) then begin

                  if Stringency >= 2 then retval = '2'|clr_red|above|ftiny|arrow|vertical

                  if LongBlackForm($1, pnt1) then begin

                    retval = 'Black Abandoned Baby'|clr_black|above|ftiny|arrow|vertical

                  end

                end

              end

            end

          end

        end

      end

    end

  end

  if WhiteBody($1, pnt0) == TRUE then begin

    if BlackBody($1, pnt2) == TRUE then begin

      if pHigh < ppLow then begin

        if cLow > pHigh then begin

          if SmallRealBody($1, pnt1, SmallForm) then begin

            if Stringency >= 5 then retval = '5'|clr_green|below|ftiny|arrow|vertical

            if cOpen > pHigh then begin

              if Stringency >= 4 then retval = '4'|clr_green|below|ftiny|arrow|vertical

              if LongBlackForm($1, pnt2) OR DojiForm($1, pnt1) OR LongWhiteForm($1, pnt1) then begin

                if Stringency >= 3 then retval = '3'|clr_green|below|ftiny|arrow|vertical

                if LongWhiteForm($1, pnt1) then begin

                  if Stringency >= 2 then retval = '2'|clr_green|below|ftiny|arrow|vertical

                  if Bearish($1, pnt2, LRRange, LRType) == TRUE then begin

                    retval = 'White Abandoned Baby'|clr_black|below|ftiny|arrow|vertical

                  end

                end

              end

            end

          end

        end

      end

    end

  end

  retval

end

Parameters

INPUT

The INPUT directive makes this formula available as a Formula Overlay. INPUT refers to the instrument in the chart. INPUT does not become an overlay parameter.

Stringency

The Stringency argument is used by nearly all candlestick overlays. It controls how many tests must pass in the evaluation of an Abandoned Baby. The lower the number, the more strict the interpretation.

The Stringency argument is an overlay parameter. You can adjust it using the Parameters dialog. The default is 5.

LRRange

The AbandonedBaby overlay uses the LR() function with either a continuous or quadratic calculation to determine how the market is trending. The LRRange (Linear Regression Range) parameter is the number of points in the Linear Regression calculation. The default is 10.

LRType

The LRType parameter has two possible settings: 2 and 3, or continuous linear regression and quadratic linear regression, respectively. The default is 3, or quadratic.

SmallForm

The SmallForm parameter represents a percentage. This parameter serves as the basis for determining whether a candlestick is Doji or near Doji. The smaller the value assigned to SmallForm the more stringent the test. The default is 10, or ten percent.

Return Value

The return value is a string plot and varies depending on the value of the Stringency parameter.  The lower the number, the stronger the pattern.

Bearish indicators are rendered in red above the candlestick. Bullish indicators are rendered in green below the candlestick.

The string plot for a fully qualified Abandoned Baby is "White Abandoned Baby" or "Black Abandoned Baby," depending on whether the Abandoned Baby is bullish or bearish, respectively.

Examples

Comments

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