The gravestone doji (or short doji) candlestick pattern (view full size chart) is one of the single candlestick patterns (i.e. it consists of only one candlestick), and even on its own (i.e. without the rest of the chart) it is a bearish pattern.
The gravestone doji candlestick opens at (or near) its low (which is obviously not known until the candlestick has closed), and closes at exactly the same price, indicating a significant reversal at its high (which is also not known until the candlestick has closed). The gravestone doji pattern is similar to the regular doji pattern, expect that the gravestone doji pattern is a bearish pattern.
Use In Trading
The gravestone doji pattern can occur in a number of different contexts (e.g. at the beginning of a trend, during a trend, at the end of a trend, etc.), and is generally bearish in any context, and is often used as an indication of upcoming price movement. When the gravestone doji pattern occurs after a significant upwards trend, it can be used as an exit from a long trade and/or an entry into a short trade. The gravestone doji is also included in some of the two or three candlestick patterns., in which case it has the same bearish significance.
