Gravestone Doji: How to Trade Using This Reversal Candlestick to Strategize

gravestone doji candle

We introduce people to the world of trading currencies, both fiat and crypto, through our non-drowsy educational content and tools. We’re also a community of traders that support each other on our daily trading journey. A Gravestone Doji signals that the price opened at the low of the session. There was a great rally during the session, and then the price closed at the low of the session. Yet, as we mentioned earlier, you must confirm the gravestone pattern with other indicators to maximize the chances of success and know exactly where to enter and exit the position. So, let’s see an example of the gravestone Doji candle pattern on a live price chart.

gravestone doji candle

The idea here is to trade pullbacks to the moving average when the price is on a downtrend. HaiKhuu LLC was officially established in January 2018 by the Founder and CEO, Allen Tran. Allen and his team of professionals are actively working together to help the average retail trader become successful and profitable in the market. HaiKhuu runs some of the largest communities of stock traders on Facebook, Discord, and TikTok.

Doji Candle Types: Dragonfly, Gravestone & More

Gravestone Doji is the most widely used candlestick pattern in different strategies. But trading without any confluence will not make you a profitable trader. Always trade gravestone Doji candlestick pattern with confluence and follow a proper risk management strategy. Make sure to backtest the above strategy properly before trading it on a live account.

In our last post, we discussed the basics of the a Doji Candlestick. Today, we will explain the Gravestone Doji in a simple way that will immediately make you a better trader. The Head and shoulders pattern is a reversal trading strategy, which can develop at the end of bullish or bearish trends. It is often referred to gravestone doji as an inverted head and shoulders pattern in… We recommend trading in a simulator with at least 20 successful attempts on this bullish reversal pattern before employing real money in the market. Our reasoning is that the stock market moves extremely fast, and you may not have the luxury of waiting on a bigger move.

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Usually, the pattern appears at the end of an uptrend and has a bearish bias. The importance of the gravestone doji chart pattern is that it doesn’t appear too often, in comparison to other candlestick patterns. In Chart 2 above, the market began the day by testing where support would enter the market. Altria found resistance at the high of the day and subsequently fell back to the opening’s price. After an uptrend, the Gravestone Doji can signal to traders that the uptrend could be over and that long positions could potentially be exited.

What does a doji candle tell you?

Although rare, a doji candlestick generally signals a trend reversal indication for analysts, although it can also signal indecision about future prices. Broadly, candlestick charts can reveal information about market trends, sentiment, momentum, and volatility.

Traders use the gravestone Doji candle pattern as a bearish trend reversal indicator. Further, to confirm the trend reversal, you should use other momentum indicators such as the RSI, MACD, and Fibonacci support and resistance levels. The gravestone doji candlestick pattern is a bearish trend reversal indicator. Candlestick patterns are a great decision support tool for active traders. A gravestone doji is a trading pattern that occurs in technical analysis. It is a bearish trend that indicates a reversal is on the horizon.


In this instance we shall say that the body should be less than 20% of candle length and it should occur near the bottom of the candle. It should also only appear in an uptrend and we will define this by the presence of a new 10-day high. The Gravestone looks just like any other doji candle except for its size; it’s much bigger than traditional dojis such as Spinning Tops and Dragonfly Dojis .

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However, the current CLOSE of the candle is now sitting at $3. There are three images below, each depicting various stages of a Candlestick pattern. Let’s assume that the Candlestick represents a single day’s worth of price action.

Gravestone Doji Candlestick Trading Strategy Explained

Feel free to ask questions of other members of our trading community. We realize that everyone was once a new trader and needs help along the way on their trading journey and that’s what we’re here for. Therefore, to identify the right gravestone doji, we recommend two things.

  • A pending order basically tells a broker to initiate a trade only once a certain price is reached.
  • But we also like to teach you what’s beneath the Foundation of the stock market.
  • In fact, you would have more success from buying a gravestone doji than shorting one, particularly in stocks.
  • Crypto assets trading can be considered a high-risk activity, where crypto assets prices are volatile, and can swing wildly, from day to day.
  • It turns bullish trend into bearish whereas dragonfly Doji turns bearish trend into bullish.

Markers like this can offer opportunities to add to short positions with confidence as you manage the down-trending trade. Overall, you can see that shorting a gravestone doji pattern is not a profitable pattern to look out for. The strategy has a low win rate and produces negative returns over every holding period tested. A doji is a Japanese candlestick that is a signal of indecision.

Is a Doji bullish or bearish?

The Gravestone Doji is a Japanese candlestick in which the open and close price of the candle is at the same level or is very close to the same level. Learn the exact chart patterns you need to know to find opportunities in the markets. RISK DISCLOSURETrading forex on margin carries a high level of risk and may not be suitable for all investors.

What is the doji after a bearish candle?

A gravestone doji candle is a pattern that technical stock traders use as a signal that a stock price may soon undergo a bearish reversal. This pattern forms when the open, low, and closing prices of an asset are close to each other and have a long upper shadow.

What is the success rate of gravestone doji?

From our research the Gravestone Doji pattern confirms 47.5% of the time on average overall all the 4120 markets we analysed. Historically, this patterns confirmed within 5.5 candles or got invalidated within 5.6 candles.

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