Pattern Overview
Description
Long upper wick and no lower wick.
Meaning
Showing rejection of higher prices. Found in uptrends; signals potential bearish reversal if followed by selling activity.
What is the Gravestone Doji candlestick pattern?
With a long upper wick and no lower wick, the Gravestone Doji reveals that buyers pushed prices up, but sellers eventually regained control. Found in uptrends, it suggests that a bearish reversal could be near, as the upper shadow indicates buyer exhaustion. The Gravestone Doji often appears at market tops, making it a valuable indicator for those looking to anticipate shifts.
Understanding the psychology behind this pattern helps traders make informed decisions, especially in markets prone to overbought conditions. If you’re keen to improve your recognition of these key reversal indicators, The Chart Guys provide in-depth resources to support your development as a trader.
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