Gravestone Doji At Top. The gravestone doji is a bearish reversal candlestick pattern that mostly appears at the top of uptrends. The maximum critical chart give you clear next point for trading with candlestick pattern a part of the graveston doji with candle signals.
As such the price of the asset is set to fall leaving behind a long lower. As you might have guessed from their opposing structures dragonfly and gravestone doji also have opposing implications. It seems as if you are looking at a gravestone from the side.
Entry to this pattern occurs as stock made low and formed a gravestone doji at the low of the downtrend.
Even though bullish gravestone doji is not highly visible pattern but this pattern is reliable pattern if it formed in the major support level. Is the price consolidating after an aggressive bullish breakout. With that said usually the gravestone doji appears at the top of an uptrend or where the price has gained resistance and is caused by a loss of momentum from the buyers and an entrance in more volume. The upper shadow of the candle represents the local capitulation of the buyers hence traders start losing confidence in the continuation of the bullish trend.