Gravestone Dozi

 

The gravestone doji is a type of candlestick pattern that converts uptrend into downtrend and it is formed at the top of the trend  characteristics:

1. Shape: The gravestone doji has a long upper shadow, a small or nonexistent real body (the difference between the opening and closing prices), and little to no lower shadow.

2. Location: It typically appears after an uptrend, signaling potential reversal or bearish sentiment. The small body indicates indecision, while the long upper shadow shows that buyers pushed the price up, but the sellers ultimately took control, causing the price to close near the open.

3. Meaning: It suggests that buyers lost momentum and the price was pushed back down by sellers, often marking a potential top or reversal point in the market.

4. Significance: The pattern is seen as a warning sign for traders that the market may soon reverse downward, especially when it forms at the peak of an uptrend.