B3 is an L3 gaming hub on Base L2, offering low-cost, scalable solutions for Web3 games. Discover its Superchain, tokenomics, and developer tools today."

 applications on blockchain are a significant growth area, with countless games introduced on 

 platforms every day. Consequently, solutions aiming to act as central hubs for on-chain games are also emerging at the same breathtaking pace. Under intense competition, new platforms in this quickly saturating niche can succeed only if they provide tangible, distinct value to developers, gamers and app operators.

Among the most intriguing solutions in this area is B3, an on-chain gaming hub that utilizes a unique architectural concept and provides unparalleled cost and efficiency benefits to all of the parties involved in blockchain gaming. Operating as a Layer 3 (L3) gaming-focused platform on the Base 

 (L2) chain, B3 features great scalability, low costs and customized functionality for on-chain games.

Since the platform's launch in August 2024, B3 has achieved spectacular growth rates over its six months on the market, with 6 million wallets and 95 games hosted on its L3 Superchain.

 (B3) is an L3 gaming chain operating on the 

The platform is designed specifically for web3 gaming, offering developers and users an environment with low transaction costs and great scalability.

B3 was developed by NPC Labs, a development studio founded by three former members of the Coinbase team involved in implementing the Base L2 chain: Viktoriya Hying, Daryl Xu and Sean Geng. The platform was launched on the Base 

 in August 2024, and introduced its own token, also called B3, in February 2025. As of the time of this writing in mid-February 2025, the gaming hub features around 6 million users and 95 blockchain games.

B3 offers developers a flexible and streamlined process for launching on-chain games. The majority of blockchain-specific procedures, such as wallet setups, connectivity and asset issuance, are handled automatically or through easily implementable modules.

B3 aims to become a leading hub for web3 gaming, with a wide variety of game genres. These include games and mini games in genres as diverse as action, adventure, sports, puzzle, casual and many more.

B3 offers a plethora of games through its dedicated gaming arcade, Basement (or BSMNT). Developers can port their games into the arcade, taking advantage of the seamless transition between the traditional Web 2.0 and web3 gaming environments offered by the platform.

Some of the most popular games in the arcade include the roulette-style 

, which features adventures using your own pixelated frog.

Operating as an L3 chain offers B3 the ability to achieve scalability and cost efficiencies that typically cannot be matched even by many L2 environments. While L2 chains improve the scalability and costs of transactions, compared to their underlying 

 (L1) networks, they’re typically not optimized for application-specific use cases. 

This is where L3 technology comes into the picture. L3 chains are built for specific applications, offering customizability and functional optimization for specialized use cases. They settle transactions on the underlying L2, but provide functionality that may not be natively available on the L2 network. With their app-specific customizations, L3 chains can achieve greater performance efficiencies.

In the case of B3, the platform uses the underlying Base network as its L2, but handles the game-specific functions on its own L3 level. The performance and cost improvements achieved by B3’s unique architectural approach are evident. 

, Base was able to cut transaction costs from 

 (ETH)’s $3 average down to about half a cent ($0.005). B3’s typical costs were about ⅕ of Base’s, averaging around $0.001.

B3 operates as an L3 Superchain that connects individual, game-specific chains called GameChains. Each GameChain is tailored to a specific game. The platform features a functionality that makes GameChains fully interoperable with each other, which helps to achieve benefits such as shared liquidity, a key advantage that can help cross-game adoption and use.

Moving crypto assets in and out of the B3 ecosystem is possible via several bridging solutions that support the chain's connectivity with the major 

 (EVM)–compatible chains. The platform's native bridging solution, Basement Bridge, can be used for deposits, withdrawals and swap operations between B3 and networks like Base,  

 (AVAX) and even a major non-EVM chain — 

Once funds are moved into the B3 environment, which usually takes less than a minute, they can be utilized across B3 games for in-game purchases and other crypto gaming operations, thanks to the shared liquidity mechanism.

Game developers are given an extensive tool kit in addition to in-built functions, which makes the launch of their games onto the Superchain as smooth as possible. They can save game states to the InterPlanetary File System (IPFS), issue NFTs and 

 fungible assets for their games, create leaderboards and set up tournaments for their user base, among other functions.

To streamline the integration of games into the B3 platform, game creators can use the BSMNT game launcher to quickly load their games, authorize players and trigger transactions based on players' actions. Loading a game via the BSMNT launcher is as easy as specifying the game's URL, appended by an authorization token code provided by B3, e.g., 

Using APIs provided by the platform, developers can handle user authorizations — such as wallets and logins — and trigger actions based on users' inputs in the game.

B3 runs two points programs to reward its ecosystem users. The XP program awards points to gamers who demonstrate dedication and achievements in games hosted by B3. On the other hand, Builder Points (BPs) are designed to reward developers who contribute to the growth of B3's environment by creating and launching games on its platform. BP points earned by game creators may then be distributed by them to their players.

The platform's native token, B3, is an ERC-20 asset issued on the Base L2 chain. It’s used for 

, referral reward payouts, eligibility for future 

 and access to early games and features on the Superchain. The token also facilitates payments to fund and publish games on the platform. Additionally, developers can apply to receive funding for their gaming initiatives from the platform in B3 tokens.

 of 100 billion. Its supply allocation shares are specified in the image below.

The B3 token is available as a Spot swap pair with USDT (

 campaign to grab a share of the 140 million B3 prize pool.

Under the terms of the campaign, new users who complete basic identity verification can earn B3 rewards by accumulating a deposit volume of at least 20,000 B3, or by depositing 100 USDT and trading 100 USDT worth of B3 via their first Spot trade. Existing users can also qualify for rewards by trading at least 500 USDT worth of B3 on the Spot market. The campaign is valid through Feb 25, 2025, 9 AM UTC.

The web3-based gaming industry is experiencing a significant boom, with game studios rushing to introduce more games to satisfy the insatiable appetite of crypto gaming enthusiasts. B3's dedicated network for on-chain games is a key development in this area. The platform's open gaming ecosystem leverages a unique L3-based model that provides its users with customizability, stellar scalability, extremely low costs and an unmatched gaming experience. 

Intermediate

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B3 (B3): Powering On-Chain Games With L3 Technology

The yen carry trade has been a fundamental strategy in global foreign exchange (FX) markets, rooted in Japan's long-standing, ultra-loose monetary policies.

Historical Context of the Yen Carry Trade

The yen carry trade has been a fundamental strategy in global foreign exchange (FX) markets, rooted in Japan's long-standing, ultra-loose monetary policies. Since the late 1990s, the BoJ has maintained a zero or negative interest rate environment, aiming to combat deflation and stimulate economic growth. This approach has made the JPY an attractive funding currency for investors seeking to borrow at low costs and invest in higher-yielding assets.

Historically, the effectiveness of the yen carry trade has been closely tied to global economic conditions. The carry trade boom from 2004 to 2007 exemplified this dynamic, as investors capitalized on the significant interest rate differentials between the JPY and other currencies. During this period, the U.S. Federal Reserve's aggressive rate hikes created favorable conditions for carry trades, leading to massive capital flows into higher-yielding currencies. 

However, the 2008 global financial crisis marked a turning point. The sudden collapse of overall risk appetite triggered rapid unwinding of carry trades, resulting in a sharp appreciation of the yen. This event underscored the inherent risks of carry trades, particularly in times of financial stress, and highlighted the vulnerability of positions reliant on stable currency conditions.

The historical performance of the yen carry trade has been cyclical, heavily influenced by global monetary policies and risk sentiment. For instance, the introduction of Abenomics in 2012 revitalized the carry trade environment through aggressive monetary easing and negative interest rates. However, global uncertainties and periodic risk aversion kept investors cautious. As we analyze the current landscape, understanding these historical foundations is crucial, as they provide insights, moving forward, into the potential challenges and opportunities for the yen carry trade.

Entering 2025, the landscape for the yen carry trade is undergoing significant transformation. Several macroeconomic factors are reshaping the environment, primarily driven by changes within Japan's economy. Rising inflation, wage growth and speculation regarding shifts in the BoJ's monetary policy are critical developments that investors must navigate.

For years, Japan grappled with deflation and stagnant wage growth. However, post-pandemic recovery has catalyzed a shift, with inflation consistently breaching the BoJ's long-standing 2% target. This inflationary pressure results from various factors, including global supply chain disruptions, rising commodity prices and labor shortages that lead to wage increases. As wages begin to rise, the potential for sustained inflation creates a feedback loop that could support higher consumption and further inflationary pressures.

In light of these economic changes, speculation around potential BoJ policy adjustments is increasing. While the BoJ has historically maintained ultra-loose policies, growing inflationary pressures may prompt the central bank to consider interest rate hikes. The implications of such policy shifts could be profound, affecting not only domestic markets but also global FX dynamics. 

As Japan's economic landscape evolves, the traditional role of the yen as a funding currency is under scrutiny. While the JPY may retain its status in the near term, shifts in monetary policy and economic fundamentals could reshape its appeal for the carry trade.

Moreover, other high-yielding currencies are emerging as attractive alternatives to the yen. The Mexican peso (MXN), South African rand (ZAR) and Turkish lira (TRY) offer compelling carry trade opportunities, bolstered by favorable interest rate differentials. However, these currencies come with their own unique risks. For instance, the MXN is sensitive to U.S. economic cycles, while the ZAR is highly correlated with global commodity prices and domestic political stability. As a result, traders must adopt dynamic 

 strategies and diversify their currency exposure in order to navigate this increasingly complex environment.

The outlook for the yen carry trade in 2025 hinges on several critical factors that will shape the future of this strategy. While the yen may continue to serve as a preferred funding currency in the near term, structural shifts in Japan's economic fundamentals and potential BoJ policy adjustments could gradually diminish its dominance.

Key considerations for investors include the likelihood of BoJ rate hikes and the tapering of yield curve control (YCC) measures. If inflation persists and wage growth continues, the BoJ may be compelled to normalize its policies, which could lead to higher Japanese government bond (JGB) yields and have an impact on global bond markets. Such changes would narrow interest rate differentials, affecting the profitability of the yen-funded carry trade.

Additionally, global macroeconomic conditions play a crucial role in determining the viability of carry trades. Diverging monetary policies among major central banks, such as the Federal Reserve and the European Central Bank, will influence interest rate differentials and investor sentiment. As these central banks adjust their policies in response to economic conditions, the relative attractiveness of the yen as a funding currency may diminish, leading traders to explore alternative options.

Emerging alternatives, such as the CHF and EUR, are gaining relevance in the carry trade landscape. These currencies may offer lower risk profiles and stable funding conditions, especially if their respective central banks maintain accommodative stances while the BoJ tightens its own. The potential for diversification in funding strategies is critical, as it allows traders to mitigate risks associated with reliance on a single currency.

Ultimately, the key to navigating the evolving carry trade landscape in 2025 lies in adaptability. Traders must remain vigilant in monitoring macroeconomic indicators, geopolitical developments and shifts in global risk sentiment. Dynamic risk management strategies, coupled with diversification across multiple high-yielding currencies, will be essential for sustained success.

Advanced

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Bybit FX Insight Report: What to Look for in the Yen Carry Trade for 2025

Polkadot Blockchain Academy will launch its first educational course for policymakers in Zug, Switzerland, from April 6-8, 2025. 

The S&P 500 gained 1.47% last week as tariff concerns eased, with investors awaiting FOMC minutes and PMI data. Gold rebounded to $2,900 on a weaker dollar and tariff concerns, with analysts eyeing $3,000. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.37%, with Bitcoin dropping by 0.96% and Ether rising by 3.35%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is S, which surged nearly 13.9% following the launch of Euler Finance on Sonic Labs with $100,000 in incentives and advanced DeFi features.

Sonic Labs (S), founded in 2018, is an EVM layer-1 blockchain evolved from Fantom, offering 10,000+ transactions per second. Its native token, S, replaces FTM at a 1:1 ratio. The platform focuses on performance, interoperability, and developer incentives. 

, offering $100,000 in rEUL incentives. Users can lend, borrow, and loop assets like $stS, $wS, $scETH, $USDC.e, $scUSD, and $wOS. The platform features near-zero gas fees, high-speed execution, and curated markets by MEV and Re7. More incentives will be available soon.

Check Out the Latest Prices, Charts, and Data of 

 its first educational course for policymakers in Zug, Switzerland, from April 6-8, 2025. The course aims to educate UK MPs and other lawmakers on blockchain technology and Web3 to help them make informed decisions on crypto regulation. The initiative is part of Polkadot’s global push to provide policymakers with structured education on the tech and its regulatory implications, especially as the UK prepares a draft crypto regulatory framework.

Yesterday, there were no BTC Spot ETF flows as the market was closed for Presidents' Day.

. Deposit assets from Solana, Base, BSC, and more, use the swap feature, and earn points, which could lead to a potential airdrop. More features such as Earn, Trade (powered by Hyperliquid), and DeFi App AI are coming soon. The platform has raised $6 million in funding.

Beginner

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Polkadot Blockchain Academy Launches Educational Course for Policymakers on Crypto Regulation

Function, previously known as Ignition, is a decentralized protocol that enables seamless BTC integration across multiple blockchain networks through FBTC.

Bitcoin's massive market value remains largely trapped, inaccessible to 

’s (DeFi's) yield-generating opportunities. Function’s decentralized protocol addresses this limitation with its FBTC token, enabling seamless Bitcoin integration across chains while maintaining a 1:1 peg to Bitcoin (BTC) and recently achieving over $1.3 billion in 

This article examines Function's innovative approach to unlocking Bitcoin's potential in the DeFi ecosystem, explores its secure cross-chain infrastructure and yield generation mechanisms, and evaluates FBTC's position as both a Bitcoin scaling solution and an investment opportunity.

, previously known as Ignition, is a decentralized protocol that enables seamless Bitcoin integration across multiple blockchain networks through its FBTC token, which maintains a 1:1 peg with BTC while offering yield generation, cross-chain transfers and DeFi composability.

, the cryptocurrency's untapped DeFi potential became evident. While Bitcoin's market cap reached $1.3 trillion, only 4% of that total was involved in DeFi —a stark contrast to Ethereum's 75% DeFi utilization. This inefficiency prompted Mantle and Antalpha Prime to develop an institutional solution.

Ignition strategically rebranded to Function in February 2025. In a recent X post, its team revealed that 

 their broader mission: liberating Bitcoin's true growth potential by establishing it as the foundation for global financial infrastructure through FBTC, Function’s institutional-grade token that maintains a 1:1 peg to BTC.

Backed by industry leaders like Galaxy Digital and Antalpha, Function has rapidly scaled to over $1.3B in TVL. The protocol now integrates with more than 25 platforms across eight major networks, making Bitcoin truly functional in modern financial markets for the first time.

One of the primary challenges Function addresses is the issue of idle Bitcoin assets. Traditionally, BTC held in wallets or exchanges remains stagnant, unable to generate yield or participate in the broader DeFi ecosystem.

Through the FBTC token, Function aims to liberate Bitcoin's growth potential by making it the standard for Bitcoin transactions across multiple blockchains. This approach effectively turns every blockchain into a 

, creating an interconnected ecosystem that allows Bitcoin to finally match Ethereum's DeFi utility.

The protocol's institutional-grade infrastructure enables seamless movement between 

 and other major networks. By bridging these ecosystems, Function allows Bitcoin to transcend its role as 

 and become the foundation for sophisticated yield strategies across DeFi.

Function operates through a sophisticated system of custodial addresses, 

. The protocol uses multi-party computation (MPC) and threshold signature schemes (TSS) to ensure maximum security of user assets.

Users who want to mint FBTC transfer native BTC to preconfigured custodial addresses. The Bridge Monitor then detects these deposits and 

, which co-sign transactions using MPC algorithms. Each node operates an independent risk control system in order to validate transactions.

 FBTC, users initiate a burn request through the Bridge contract. The system then processes the request, burns the FBTC tokens and transfers the equivalent BTC to the user's preconfigured withdrawal address.

The following three core features power Function's infrastructure.

FBTC maintains a strict 1:1 peg with Bitcoin through an institutional-grade swapping mechanism. Verified merchants who have completed rigorous 

 processes facilitate secure conversions between BTC and FBTC. The system uses Chainlink's proof of reserves (PoR) service to ensure transparency and continuously monitor BTC reserves.

Function maximizes Bitcoin's potential through 

 (FBTC1), enabling institutional-grade yield generation. Users can access sophisticated yield strategies through leading DeFi protocols, such as PumpBTC, Bedrock and Minterest, with more partners joining regularly.

 campaign, also known as the FBTC Yield and Campaign, rewards active ecosystem participants with "Sparks" — tracking contributions through staking, liquidity provision and protocol interactions. These points establish a merit-based pathway to future protocol benefits.

The FBTC Bridge enables secure cross-chain transfers across Ethereum, Binance Smart Chain Arbitrum One, Mantle Network and Build on Bitcoin (BOB). It employs a TSS network and role-based access control to ensure security and efficiency.

The Bridge includes sophisticated fee management with flexible configurations for different chains and operations. Each transaction undergoes multiple validation layers through the 

Function has achieved remarkable growth since its launch, securing over $1.30B in TVL and attracting 119,490 unique holders. The protocol's institutional-grade infrastructure now secures over 13,594 BTC, and integrates with more than 30 protocols and chains.

With its recent evolution from Ignition to Function, the protocol has reinforced its mission to establish FBTC as the definitive standard for Bitcoin in DeFi. Its design supports future expansion into structured products and advanced trading strategies for institutional participants.

Future developments focus on advancing Bitcoin's financialization through enhanced capital efficiency, yield optimization and strategic partnerships. The protocol continues to expand its omnichain framework,= while maintaining its core principles of security and decentralization.

The FBTC omnichain token exists in two forms: FBTC0, which maintains the direct BTC peg, and FBTC1, specifically designed for yield generation.

 (approximately $1.31 billion), with a total FBTC supply of 13,523.182 tokens distributed across multiple chains, including Ethereum (333.366), Mantle (205.611) and BNB Smart Chain (25).

Function implements a fee model for minting, burning and cross-chain operations. Fees are calculated based on operation type and specific chain configurations, with default and chain-specific fee structures available. Merchant fees for mint and burn operations follow a tiered rate design.

The FBTC token's supply is directly tied to the amount of BTC held in custodial addresses, ensuring full backing and maintaining the peg through Chainlink's PoR system.

Given FBTC's 1:1 peg mechanism with Bitcoin, its base price movements are fundamentally tied to Bitcoin's price dynamics. The token will always move in perfect correlation with BTC's market value. However, FBTC's primary value proposition isn't price appreciation, but rather enabling yield generation from otherwise idle Bitcoin holdings. Through various DeFi protocols, FBTC holders can earn substantial yields while maintaining their Bitcoin exposure.

With growing institutional interest in Bitcoin following January 2024’s Spot ETF approvals, BTC prices could see significant upside — and FBTC would follow. Function’s TVL across multiple chains demonstrates strong market confidence in this approach to maximizing Bitcoin utility.

With institutional-grade security infrastructure and over $1.3B in TVL, Function has established itself as a leading Bitcoin bridge solution. However, investors must weigh both the opportunities and risks, outlined below, before allocating capital.

With its institutional partnerships, proven security infrastructure and growing ecosystem integrations, Function (FBTC) shows significant potential. However, prospective investors should 

 and consider their own risk tolerances before investing.

Function has unlocked Bitcoin's DeFi potential by enabling BTC holders to generate yield, while maintaining secure 1:1 BTC backing. With a $1.30B TVL and integration across over 25 platforms, Function demonstrates strong market validation. 

As institutional Bitcoin adoption grows post-Spot ETFs, Function is positioned to become the standard for putting Bitcoin to work in DeFi.

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Function (FBTC): Unleashing Bitcoin's Potential Across Blockchains

Candlestick

Trading

Gravestone Doji is ideal for traders to critically identify the bullish and bearish position for a profitable trade. Learn how it works now.

Gravestone

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A Gravestone Doji is a bearish candlestick pattern with a very short or preferably invisible body and a long upper shadow. Ideally, the open, low, and close prices should be relatively at the same level. It usually appears at the top of an uptrend and anticipates a trend reversal. The longer is the upper shadow where the more bearishness should be expected.

The Gravestone Doji usually shows up where the resistance level is forming, which can be used for future reference whenever the price comes back to test the same level again.

As mentioned, the Gravestone has a very long upper shadow, while the body is at the very bottom of the candlestick, suggesting that the open, close, and low prices coincide. Thus, we get an inverted T-shaped pattern. Ideal Gravestones are relatively rare, but the close and open should be very close if not at the same level. Here is what the pattern looks like on the chart:

While the Gravestone Doji should be seen close to the top of uptrends, you can sometimes find it at the bottom of a downtrend, though this is a rare occurrence. In this case, you should not consider it to be bullish. Instead, interpret it as a trend continuation signal, as the downtrend potentially has more room until finding the oversold zone.

The Gravestone Doji forms when the price closes at relatively the same level where it opened, providing that the open coincides with the low or at least the two are very close. This pattern occurs when bulls have enough strength to push prices upward, but they’re suddenly out of steam and return to previous levels after hitting an area of strong resistance. 

Bulls face strong opposition when the Gravestone is at its high, and the selling pressure pushes prices back to the opening price during a given period. That suggests the market participants 

, and a potential downtrend is just around the corner.

On the contrary, right after a Gravestone Doji, traders would either open short positions or close their existing long positions. The pattern helps traders better visualize the resistance level, which can be tested again in the near future, especially when the price makes another bullish attempt.

As a rule, Gravestone Dojis would show up at the top of uptrends. However, if you can sometimes encounter it at the bottom of an ongoing downtrend. Don’t be confused about it – it’s still a 

 that anticipates trend continuation. In this case, bulls tried to reverse the bearish trend but failed, and the price is likely to continue its downward move.

When analyzed separately, the Gravestone Doji might suggest local price rejection. But if it forms at a confluence level near the resistance zone, it acts as a strong sell signal.

If the Gravestone Doji appears at the top of an uptrend, traders would be interested in opening short positions. Those who have open longs would close them. However, it is crucial to base your decision on additional technical indicators rather than on the candlestick pattern alone. You can use a slow and a fast-moving average along with momentum indicators, such as 

, to assess whether the price has entered the overbought level.

As a rule of thumb, traders will also check the volume. A higher volume increases the reliability of the Gravestone Doji.

The shadow’s size is critical – a longer wick would make this pattern more relevant as a trend reversal signal.

Trading Gravestone Doji at the Top of an Uptrend

If you spot a Gravestone Doji forming after a bullish move, you should be ready for a price reversal. In fact, you should expect this pattern at the top of uptrends most of the time. However, it doesn’t make sense to open a position right after the pattern, as the uptrend might make another attempt to break the newly formed resistance. Instead, be ready to enter the market with a short position after the first candlestick closes below the Gravestone Doji’s low.

The stop loss of the position should be set right above the high of the pattern, while the take profit target should be double the size of the Gravestone Doji. Alternatively, you can set a trailing take profit to take the most from the bearish move.

It’s also to check the RSI or Stochastic – if the price is in the overbought zone (above 70% or 80%, respectively), then the Gravestone Doji’s signal is even more relevant. The same is true if the volume is high.

In the example below, the Gravestone that came after an uptrend was followed by a retreat. When the pattern showed up, the Stochastic lines crossed, and the indicator was leaving the overbought zone. 

Trading Gravestone Doji at the Bottom of a Downtrend

Sometimes the Gravestone Doji might show up in a bearish market, but this is a rare occurrence. In this case, you should not treat it as a trend reversal signal because it might now end up with a bullish move. Most of the time, it suggests that the bearish move is about to continue; hence, it makes sense to open a short position. Bulls who anticipate the reversal of a bearish trend should not go long after spotting this pattern in the middle of the downtrend.

In the example below, the GBP/USD pair has formed a steep downtrend, and the market has been in the oversold level for a while. The prerequisites for a rebound or at least a sideways move were there, but then the Gravestone Doji showed up. After the pattern, bulls have attempted a reversal. But the bears came back stronger and countered with an even lower price. Of course, this trend is applicable to cryptocurrency trading.

In this case, you should have opened a short position after the first candle that closed below the Gravestone Doji, with similar stop loss and takes profit targets as discussed above.

Even though the Gravestone Doji is regarded as a bearish signal, you should not open positions based on this pattern alone. There are some limitations that you should consider:

All in all, you should also use other indicators to get more accurate buy and sell signals.  

The Gravestone is part of a group of candlestick patterns called Doji, and its form shows similarities to other patterns, such as the Inverted Hammer and Shooting Star.

It would be best if you were careful not to confuse this pattern with the inverted hammer. In which it looks similar but has a slightly larger body and forms at the bottom of a downtrend, and anticipates an upcoming bullish move.

Gravestone Doji vs. Shooting Star vs. Inverted Hammer

Suppose you see a candlestick with a long upper shadow at the bottom of a downtrend. In that case, you should make sure to understand the difference between the Gravestone Doji and the Inverted Hammer. That’s because they anticipate opposite moves. The Gravestone points to the continuation of the downtrend, while the Inverted Hammer expects a trend reversal. The latter has a visible body, and the lower shadow is relatively more visible.

Also, the Gravestone Doji is very similar to the Shooting Star pattern. As both reversal candlesticks appear at the top of uptrends and have longer upper shadows. The main difference is Shooting Star has a visible body whose close price should be ideally below the open.

In conclusion, the Gravestone Doji is a great pattern. Especially when it can provide decent bearish signals, mostly when they show up at the top of uptrends. Still, traders are advised to use it in combination with technical indicators.

On a side note, Gravestone is the opposite of the Dragonfly Doji, which has the same characteristics but inverted. Consequently, Dragonfly would anticipate the reversal of a downtrend. The open, high, and close of the Dragonfly have to be relatively the same level, forming a T-shaped candle. As with Gravestones, it is hard to find ideal Dragonfly patterns, so slight variations are allowed.

The Gravestone and the Dragonfly are essentially the same phenomenon but mirrored. You can trade both of them with the help of additional technical indicators that can provide more insights into the price action’s behavior.

Candlestick Patterns Professional Traders Use

 – A curated list of candlestick patterns most frequently used by traders

 – Learn the basics of candlestick patterns

 (Chart basics: trend, neckline, wedges)

Gravestone Doji Candlestick: What Does It Mean?

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