Gravestone Doji
A bearish reversal pattern that develops when the Doji is at, or very near the low of the day.
Gravestone Doji is a specific version of Shooting Star. The Shooting Star has a small body, but the Gravestone Doji has no body, thus it is more bearish than Shooting Star.
The long upper shadow is generally interpreted by technicians as meaning that the market is testing to find where supply and potential resistance is located.
The construction of the Gravestone Doji pattern occurs when bulls are able to press prices upward. However an area of resistance is found at the high of the day and selling pressure is able to push prices back down to the opening price. Therefore, the bullish advance upward was entirely rejected by the bears.
Recognition Criteria:
· UpTrend
· Doji
· Closing price is equal to the Low OR
Closing price-Low range is equal to or lower than N% of the total line range (High-Low)
Function: GravestoneDoji()
Trend: Bearish
Type: Reversal