Gravestone Doji
Definition
Doji with long upper shadow and no lower shadow.
Gravestone Doji is a single-candlestick pattern consisting of a small real body at the top of the candle, with a long lower wick (shadow) and no upper wick. It signals potential bearish reversal, as the price opened and closed near its high, but failed to advance further, indicating selling pressure.
Gravestone Doji matters because it can help traders identify potential trend reversals from bullish to bearish. For instance, after a prolonged uptrend, a Gravestone Doji may signal that buyers are losing momentum, and sellers are taking control, potentially marking a top in the market.