HOME ABOUT ARCHIVES BLOG SUBSCRIBE   SIGN IN











Abandoned Baby
Belt Hold
Breakaway
Concealing Baby Swallow
Doji Star
Dragonfly Doji
Engulfing
Gravestone Doji
Hammer
Harami
Harami Cross
Homing Pigeon
Inverted Hammer
Kicking
Ladder Bottom
Mat Hold
Matching Low
Meeting Lines
Morning Doji Star
Morning Star
Piercing Line
Rising Three Methods
Separating Lines
Side by Side White Lines
Stick Sandwich
Three Inside Up
Three Line Strike
Three Outside Up
Three Stars In the South
Three While Soldiers
Tri Star
Unique Three River Bottom
Upside Gap Three Methods
Upside Tasuki Gap

Gravestone Doji
print this page
send to a friend



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 a downtrend or during a pullback within an uptrend, the stock gaps down. A valid attempt is made to rally the stock off the bottom, but the strength subsides and the stock falls to close near the day’s low at the same price it opened. The rally attempt failed, but it does suggest that there are some bulls out there looking to buy. For a reversal to occur a strong follow up day is needed with solid volume.

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




Here's a good example of playing what is considered a reversal candle….in a continuation scenario. GNTX was steady trending up when it pulled back on declining volume to an area that had previously been established as possible support. It then formed a bullish Gravestone Doji candle, and this started the reversal of the move down (but we actually consider it to be a continuation of the move up).

 

 

 

 

 

 

 


» back to top