Abandoned

In the forex market, the term “abandoned” refers to a pattern that occurs in a price chart during a specific period. Abandoned, which means “left behind” in English, signifies a formation in which a particular trend abruptly ends or reverses in the price chart.

The abandoned formation typically indicates the end or reversal of a trend. It signifies a sudden change in price movements and a rapid reversal of the trend. This formation can indicate a turning point where a trend ends and the market starts moving in the opposite direction.

The abandoned formation generally includes three significant elements in a price chart:

1. A trend: The abandoned formation requires the existence of a pre-established trend. This trend usually represents an upward or downward movement.

2. A gap: In the abandoned formation, there is a gap at the point where the trend ends or reverses. This gap signifies that the price opens at a different level from the previous closing price.

3. A reverse movement: In the abandoned formation, prices start moving rapidly in the opposite direction of the trend. This indicates that the previous trend has ended, and a new trend is beginning.

The abandoned formation can be considered at points where a trend ends or reverses. However, like any formation, it should only be used in conjunction with other technical analysis tools and indicators. This formation can help investors identify potential trend changes, but it should not be used alone to make investment decisions.