Technical Glossary / Candlestick Patterns
Gravestone Doji
A doji with a long upper wick and almost no lower wick. Price rallied and finished back at the open.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
Open and close sit at or near the low. The high is far above. Buyers pushed the period up and sellers brought it all the way back.
How to identify it
An inverted T: a long upper shadow and a body that is only a line at the bottom. An inverted hammer has a real body. A gravestone does not.
Bullish reading
After a long decline the shape is not automatically bullish. A failed rally inside a downtrend can just continue down.
Bearish reading
At the end of a rally, or under resistance, the long upper wick says the push up failed. Traders look for the next bar to close under the gravestone low.
Common mistakes
Shorting every long upper wick. The location, after an advance and into supply, is the part that makes it a gravestone story.
Limitations
The name sounds more certain than the evidence. It is one period of rejection, and it fails often when the larger trend is still up.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.