The Gravestone Doji is a Bearish reversal candle.
The Gravestone Doji is only part of a smaller candlestick pattern.
A Gravestone Doji is formed when the price of a security touches a high in the opening session, but the price closes around its starting point by the end of the session.
It is formed in the market when the open, low, and close of a security are very close, at almost the same price.
This is because in the initial session the buyer tried to move the price to a new price,
But sellers close the price near it's open, i.e. buyers start weakening and sellers are getting strong.
The Gravestone Doji tells us that the bullish phase of the market is about to end and the bearish phase may begin.
When the Gravestone Doji is formed in a bullish market,
Usually the Gravestone Doji is formed in a bullish market, which is why it is called Bearish Reversal Candle.
But sometimes it builds up at the bottom after a long downtrend.
In this case its behavior is reversed. Here it indicates bullishness.
You may have question in your mind that how the same candle is Bearish and Bullish?
You will definitely get the answer of this too, just continue reading...
If you are enjoying the market rally and suddenly you find Gravestone Doji....
Let's know what to do next?
And how To Trade gravestone doji?
If you see a gravestone doji at the bottom after a slowdown, change your gear and get ready for a reversal.