Gravestone Doji
bearish reversal signal · 1 candle · reliability 3/5
A doji with a long upper wick: buyers pushed price higher, but sellers drove it back to the open by the close.
The Gravestone Doji is the mirror image of the Dragonfly Doji: the open and close sit near the period low, with a long upper wick. Its outline resembles a gravestone. The pattern shows buyers tried to lift price during the period, but sellers pushed it back to the starting point. At the end of an uptrend, it is a bearish reversal signal.
What does it signal? A Gravestone Doji at the end of an uptrend signals a potential reversal — buyers tried to push higher, but sellers forced price back down.
When is it reliable? At a strong resistance level, with above-average volume and a confirming red candle in the next period.
When to avoid it? In sideways markets and on short time frames such as 1-minute and 5-minute charts — noise is too high and the signal has little statistical value.
Anatomy and identification rules
Candle anatomy
- 1
Open and close are nearly identical at the bottom of the period
- 2
Long upper wick — at least 70% of the full candle range
- 3
No lower wick, or only a minimal one
- 4
The shape resembles an upside-down T
Identification rules
- The body is no more than 3% of the full candle range
- The upper wick is at least 70% of the full candle range
- The lower wick is no more than twice the body
- It is a bearish signal only at the end of an uptrend
- A confirming bearish candle is needed
Pattern in chart context
What it says about the market
Context of appearance: It appears at the end of an uptrend near a major resistance level. It is also common as a reaction to news.
Market psychology in three steps
- 1
Uptrend Continues. Several candles print higher highs and higher lows. Buyers control the market, and sentiment is positive.
- 2
Gravestone Doji Forms. Buying pressure fades, and sellers return. Price is pushed back near its starting point, creating a possible reversal setup.
- 3
Confirmation Arrives. The next candle closes with a red body, ideally on high volume. Sentiment has shifted, and a new downtrend begins.
Same shape, opposite meaning
The Gravestone Doji and the Dragonfly Doji look identical. The difference lies in context — mistake one for the other and you enter in the opposite direction. The candle shape alone is never enough: always read the trend first, then the pattern.
Most common mistakes
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Ignoring Context. A Gravestone Doji is meaningful only at the end of an uptrend. In a sideways market or downtrend, it carries a different meaning — analyze the trend first.
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Entering After the Pattern Closes. The pattern itself is not an entry trigger. Confirmation comes from the close of the next red candle. Patience means fewer false signals.
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Using Too Short a Time Frame. On 5-minute candles, most reversal patterns are noise. Daily and 4-hour time frames tend to produce the highest hit rate.
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Ignoring Volume. A Gravestone Doji on low volume is a weak signal. With above-average volume, the reversal is more likely. Check the volume bar as part of the setup.