{"id":12178,"date":"2018-10-14T09:16:10","date_gmt":"2018-10-14T09:16:10","guid":{"rendered":"https:\/\/commodity.com\/technical-analysis\/gravestone-doji\/"},"modified":"2026-04-15T02:32:09","modified_gmt":"2026-04-15T02:32:09","slug":"gravestone-doji","status":"publish","type":"page","link":"https:\/\/commodity.com\/technical-analysis\/gravestone-doji\/","title":{"rendered":"Gravestone Doji: How to Trade Using This Reversal Candlestick to Strategize"},"content":{"rendered":"\n

In this guide to understanding the Gravestone Doji Candlestick Pattern<\/strong>, we’ll show you what this indicator looks like, explain its components, teach you how to interpret it, and discuss its limitations.<\/p>\n\n\n\n\n

What Is the Gravestone Doji Candlestick Pattern?<\/h2>\n\n\n\n

The Gravestone Doji candlestick pattern<\/a><\/strong> can be interpreted as a bearish reversal<\/strong> when it occurs at the top of uptrends<\/strong>. The Gravestone Doji can help traders see where resistance to a pricing increase is located. It is typically used with other technical indicators<\/a> to identify a possible uptrend.<\/p>\n\n\n\n

What Does a Gravestone Doji Look Like?<\/h3>\n\n\n\n

The Gravestone Doji chart pattern is an inverted “T”-shaped candlestick that’s created when the open, high, and closing prices are nearly equal. The most important part of the Gravestone Doji is the long higher shadow<\/strong>.<\/p>\n\n\n\n

\"Chart
Chart 1<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

Why Is the Long Upper Shadow Important?<\/h3>\n\n\n\n

The long upper shadow is generally interpreted by technicians as meaning that the market is testing to find where supply and potential resistance<\/strong> is located.<\/p>\n\n\n\n

Bulls Rejected by Bears<\/h3>\n\n\n\n

The construction of the Gravestone Doji pattern<\/a> occurs when bulls<\/strong> press prices upward.<\/p>\n\n\n\n

However, an area of resistance is found at the high of the day and selling pressure pushes prices back down to the opening price. Therefore, the bullish<\/a> advance upward was rejected by the bears<\/strong>.<\/p>\n\n\n

<\/div>\n\n\n\n

How to Interpret the Gravestone Doji<\/h2>\n\n\n\n

Chart 2<\/a><\/strong> below of Altria (MO) stock illustrates a Gravestone Doji that occurred at the top of an uptrend:<\/p>\n\n\n\n

\"Chart
Chart 2<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

What Does a Dragonfly Doji Mean?<\/h3>\n\n\n\n

In Chart 2<\/a><\/strong> above, the market began the day by testing where support would enter the market. Altria found resistance at the high of the day <\/strong>and subsequently fell back to the opening’s price<\/strong>. After an uptrend, the Gravestone Doji can signal to traders that the uptrend could be over and that long positions could potentially be exited.<\/p>\n\n\n\n

Gravestone Doji vs Dragonfly Doji<\/h3>\n\n\n\n

The reverse of the Gravestone Doji is the bullish<\/strong> Dragonfly Doji<\/a>. It looks like an upside-down version of the Gravestone and it can signal a coming uptrend.<\/p>\n\n\n\n

Limitations of the Gravestone Doji<\/h2>\n\n\n\n

Although the Gravestone Doji can indicate the coming of a bearish<\/a> price change, traders should not rely on this indicator alone:<\/p>\n\n\n\n