What is a gravestone doji?

A gravestone doji is pattern that occurs in technical analysis. This doji is a bearish pattern that suggests a reversal followed by a downtrend in the price action. A gravestone pattern can be used as a sign to take profits on a bullish position or enter a bearish trade. The pattern is represented by an inverted T with a long upper shadow.

What is a gravestone doji candlestick pattern?

The Gravestone Doji candlestick pattern can be interpreted as a bearish reversal when it occurs at the top of uptrends. The Gravestone Doji can help traders see where resistance to a pricing increase is located. It is typically used with other technical indicators to identify a possible uptrend. What Does a Gravestone Doji Look Like?

Should you short a gravestone doji stock?

According to traders, this pattern represents the side profile of a bull gravestone. When a candle closes below the little body of the Gravestone Doji, you should short the stock. Every gravestone Doji should have a stop loss. This stop loss should be put above the candlestick's highest point.

Can a trader act on a gravestone doji?

Traders will generally not act on a gravestone doji unless the next candle provides confirmation of a reversal. The first and best way to get a grip on how technical analysis works is to learn about it—read books, take courses both on and offline, talk to other traders, and visit websites that can help teach you some tricks of the trade.