Gravestone Doji Candlestick: What Does It Mean?
Dec 11, 2020
9 min read
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Day traders and swing traders who’re starting their trading journeys would consider strategies that revolve around technical indicators. While this is not a wrong approach, some candlestick patterns can provide accurate signals that might boost profitability. One of these patterns is the Gravestone Doji candlestick, which can be observed quite often on the candlestick chart.
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.