Bearish Abandoned Baby

No worries...no one is actually abandoning a baby to the bears here. Not if they behave themselves.

This is a "candlestick pattern" that is made when the prices are tracked and signals to analysts and investors that the current rising stocks might be about to start going downward.

There are a few terms here, so we'll explain them in steps. A "candlestick" is a type of chart that shows the low, high, open and close price of a share for a specific period (in this case, a day). The signals are referred to as white candlestick (a line on the chart), red candlestick (a line on the chart), and a doji (a dash). A white candlestick is usually white or green on a trading chart, and means the security had a higher close price than open. The red candlestick closed with a lower price than it opened with, and is usually black or red on a chart. The doji is shown as a dash on the chart, and means the opening and close price was the same. It's a white candlestick, followed by a doji with a higher open/close price than the day before closed at, and then a red candlestick with a lower open than the doji had.

When investors see that particular pattern of "candlesticks" and "doji," they know there might be a stock drop pending and a profit to be made by quickly selling. Where the abandoned baby term comes in...we're not sure. We're guessing the person who started the nickname had a weird sense of humor. Which, uh...we would know nothing about.