Gravestone doji candlestick pattern indicates a potential bearish trend reversal. Gravestone doji is generally formed at the top of the price chart. Traders interpret this pattern as a sign to take a bearish trade in the underlying stock.

The gravestone doji pattern is formed when the market experiences a strong bullish momentum followed by a sudden rejection of the higher prices. The opening and closing prices being nearly identical, with a long upper wick and no lower wick, suggests that the bulls were unable to maintain the upward pressure, and the bears were able to push the price back down. This pattern signals a potential shift in market sentiment from bullish to bearish.

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