Gravestone Doji Definition: A gravestone doji is a type of candlestick pattern that is formed when the opening and closing price of the underlying asset are equal and occur at the low of the day. The long upper shadow suggests that the day’s buying buying pressure was countered by the sellers and that the forces of supply and demand are nearing a balance. This pattern is commonly used to suggest that the direction of the trend maybe be nearing a major turning point.
Aussie and Euro printed textbook Gravestone Doji’s on the Daily charts Friday…. charts below. Trend reversals often arent accompanied by obvious catalysts. Positioning gets extreme and with no fresh buying.. tops are put in place. The Aussie and Euro gravestone doji’s being on daily charts have to be taken in a short term context. For short term at least a top is in place and being fresh long is risky and bias is to sell strength with stops above daily highs and the gravestone doji.