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.
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.