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Abandoned Baby
Advance Block
Belt Hold
Breakaway
Dark Cloud Cover
Deliberation
Doji Star
Dragonfly Doji
Downside Gap Three Methods
Downside Tasuki Gap
Engulfing
Evening Doji Star
Evening Star
Falling Three Methods
Gravestone Doji
Hanging Man
Harami
Harami Cross
Identical Three Crows
In Neck
Kicking
Meeting Lines
On Neck
Separating Lines
Shooting Star
Side By Side White Lines
Three Black Crows
Three Inside Down
Three Line Strike
Three Outside Down
Thrusting
Tri Star
Two Crows
Upside Gap Two Crows

Gravestone Doji
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Pattern: reversal
Reliability: low/moderate

Identification
A Doji forms at the lower end of the trading range. The upper shadow is usually long while the lower shadow is small or almost nonexistent.

The Psychology
In an uptrend or within a bounce of a downtrend, the stock gaps up. A valid attempt is made to rally the stock, but the strength subsides and the stock falls to close near the day's low at the same price it opened. Failure to follow through with strength suggests the bulls may be losing strength. Although this is not necessarily extremely bearish, it is less bullish, so stops should be moved up or profits taken on longs. For a reversal to occur a weak day is needed to confirm the pattern.

The bearish Gravestone Doji is similar to the bearish Shooting Star, bullish Inverted Hammer, and bullish Gravestone Doji.



Here is an example of using a Gravestone Doji as a reason to exit a long position – but not to enter a short. The stock is simply too strong to short unless you are a slick short term trader. If this pattern forms at resistance, a safer short entry would be provided.

 

 

 

 

 

 

 

 



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