What is bullish gravestone doji?

It is essential to understand candlesticks for successful trading. Bullish Gravestone Doji is a special formation, because it includes a Doji (opening and closing prices are the same) which has only upper shadow. Bullish Gravestone Doji formation forecasts an upcoming ascending trend, signalling a trend reversal with medium reliability.

What is a gravestone doji Candlestick?

One of these patterns is the Gravestone Doji candlestick, which can be observed quite often on the candlestick chart. A Gravestone Doji is a bearish candlestick pattern with a very short or preferably invisible body and a long upper shadow. Ideally, the open, low, and close prices should be relatively at the same level.

Is gravestone doji a good reversal pattern?

Also, the Gravestone Doji is very similar to the Shooting Star pattern. As both reversal candlesticks appear at the top of uptrends and have longer upper shadows. The main difference is Shooting Star has a visible body whose close price should be ideally below the open. In conclusion, the Gravestone Doji is a great pattern.

How is a gravestone doji formed?

The Gravestone Doji is formed when the price closes at or near the same level as when it opened, assuming that the open and low are in close proximity. When bulls have the muscle to propel prices upward, but they run out of steam and return to previous levels after reaching a solid resistance area, this pattern emerges.