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Gravestone Doji Candlestick

open and close are equal long upper shadow, no lower shadow

The gravestone doji is a top reversal candlestick. A gravestone doji is a specific doji where the open and close are at the bottom of the candlestick and the candlestick has a long upper shadow with no lower shadow (a very small lower shadow does not necessarily void the pattern). At the start of the day, bulls are able to continue the prior uptrend and push prices higher; however during the day, a price is reached where bears take over control and push prices back to where the day started. According to Nison (1991, p. 159), the longer the upper shadow and the higher the price level, the more bearish the gravestone doji becomes. Though the gravestone doji is a specific form of the shooting star formation, Nison (1991, p. 161) states that the gravestone doji is more bearish than the shooting star candlestick.

The opposite of the gravestone doji is the dragonfly doji.

Gravestone Doji Candlestick Chart Example

candlestick chart with a gravestone doji at the top of an uptrend

The chart above of the Dow Jones Industrial Average ETF (DIA) shows a gravestone doji marking the top of the uptrend. Notice how the high of the upper shadow of the gravestone doji marks an area of resistance that is not penetrated by future days.

Works Referenced

  1. Kirkpatrick II, C.D., & Dahlquist, J.R. (2010). Technical Analysis: The Complete Resource for Financial Market Technicians (2nd ed.). Upper Saddle River, NJ: FT Press.
  2. Rockefeller, B. (2011). Technical Analysis For Dummies (2nd ed.). Hoboken: John Wiley & Sons.
  3. The Pattern Site. (2008). Bulkowski's Measure Rule. Retrieved June 1, 2012, from http://thepatternsite.com/measure.html