Gravestone Doji
Candlestick PatternsA doji candlestick where the open, close, and low are at the same level with a long upper wick. It signals bearish rejection when appearing at the top of an uptrend.
What Is a Gravestone Doji?
The gravestone doji is the bearish counterpart of the Dragonfly Doji. It looks like an inverted T. The open, low, and close are all at or near the same price (the bottom of the candle), with a long upper shadow extending above. There is no lower shadow.
During the session, buyers pushed the price significantly higher, but sellers drove it all the way back to the opening price. The rejection of higher prices leaves a "gravestone" shape on the chart.
Bearish Signal
At the top of an Uptrend on GBP/USD, a gravestone doji signals that the rally has encountered strong selling pressure. Despite attempting higher prices, the market ended right where it started. Confirmation comes when the next candle closes below the gravestone's open/close.
Enter short with a stop above the gravestone's high (the tip of the upper wick). Target the nearest Support level.
Reliability
The gravestone doji is most trustworthy on daily and weekly charts. On intraday timeframes, the precision required (open equals close) makes it rarer but also more prone to noise. When one does appear on a 4-hour chart at a key resistance zone, it deserves attention.
Related Terms
Dragonfly Doji
A doji candlestick where the open, close, and high are at the same level with a long lower wick. It signals bullish rejection when appearing at the bottom of a downtrend.
Doji
A candlestick where the open and close are virtually equal, forming a cross or plus shape. It signals market indecision and a potential reversal.
Shooting Star
A bearish reversal candlestick with a small body at the bottom and a long upper wick. It appears at the top of an uptrend, showing that buyers were overwhelmed by sellers.
Long-Legged Doji
A doji with very long upper and lower wicks, showing extreme indecision as the price swung widely in both directions before closing near the open.