A Gravestone Doji is a significant candlestick pattern in technical analysis, often signaling a potential reversal in price direction. It is characterized by a long upper shadow, little to no lower shadow, and an open and close price that are nearly identical, appearing at the bottom of the candle. This formation typically occurs at the top of an uptrend and suggests that buyers initially pushed prices higher. Still, sellers regained control by the end of the session, driving prices back down to the opening level. This indicates a strong rejection of higher prices and a potential shift in market sentiment from bullish to bearish.

The Gravestone Doji is considered a bearish reversal signal, especially when it appears after a sustained uptrend. It reflects a loss of momentum among buyers and the possibility of a trend reversal. However, traders often seek confirmation from subsequent price action or additional technical indicators, such as volume spikes or bearish follow-through candles, to validate the pattern. While the Gravestone Doji is a powerful tool, its reliability depends on the broader market context and supporting signals. Traders use it to identify potential exit points for long positions or to consider short-selling opportunities, making it a valuable component of candlestick analysis.

A Gravestone Doji is a candlestick pattern in technical analysis that signals a potential bearish reversal in a market. It forms when the open, low, and closing prices are near the same level, with a long upper shadow extending upward. This pattern indicates that buyers initially pushed prices higher during the session, but sellers regained control, driving prices back down to the opening level. The Gravestone Doji is often interpreted as a sign of weakening bullish momentum and a possible shift to bearish sentiment, especially when it appears after an uptrend. Traders view it as a warning to exercise caution, as it may precede a price decline. Confirmation from subsequent price action or additional indicators is recommended before making trading decisions based on this pattern.