What it is
The Gravestone Doji is a single-candle bearish reversal pattern where the open, low, and close are at or very near the same level, with a long upper shadow extending upward. It forms a distinctive inverted "T" shape.
This pattern is essentially a shooting star taken to the extreme - instead of a small body, there's virtually no body at all. The long upper shadow shows that buyers pushed price up significantly during the session, but sellers completely erased all gains by the close.
The psychology
The Gravestone Doji tells a powerful story of complete rejection of higher prices. During an uptrend, bulls are confident. During this session, they pushed price significantly higher, testing new levels and expecting more gains.
But here's what makes this pattern special: sellers didn't just step in - they completely dominated. By the close, every single tick of advance had been erased. The session ended exactly where it began, with buyers having nothing to show for their efforts.
This total rejection of higher prices sends a strong psychological message: the buying pressure has been exhausted, and sellers are willing to defend this level with full conviction.
Identification
- 01Prior uptrend - Pattern must appear after a meaningful advance
- 02Open = Low = Close - Little to no body at the bottom of the range
- 03Long upper shadow - The defining feature; should be significant
- 04No lower shadow - Lower wick should be absent or nearly absent
- 01Very long shadow - Longer shadows indicate stronger rejection
- 02Volume spike - Higher than average volume confirms participation
- 03Resistance confluence - Pattern at known resistance, trendline, or Fibonacci
- 04Bearish confirmation - Following candle closes lower
- 01No prior uptrend - In a downtrend, may signal continuation not reversal
- 02Lower shadow present - Any significant lower shadow invalidates pattern
- 03Short upper shadow - Without significant shadow, it's just a doji
- 04Bullish follow-through - Next candle closing above the high negates signal
Execution framework
Conservative: Enter short on a close below the gravestone doji's low, confirmed by bearish follow-through.
Aggressive: Enter short at the close of the doji if at strong resistance with additional confluence.
Place stop above the high of the upper shadow. The complete rejection of that level is the pattern's strength - if price breaks above, the signal is invalidated.
T1: Previous swing low or nearest support level. T2: Measured move equal to the shadow length projected downward. T3: Use trailing stop on 50% position for extended moves.
Minimum 1:2 R:R required. Gravestone Dojis with longer shadows offer better R:R potential.
Context matters
A Gravestone Doji is only as good as the context it appears in. The same candle shape can be a high-probability reversal signal or noise - the difference is where it forms and what surrounds it.
- 01At major horizontal resistance that has held multiple times
- 02Touching a declining trendline from higher timeframe
- 03At Fibonacci 61.8% or 78.6% extension level
- 04After a steep, overextended rally (euphoria)
- 05With bearish divergence on RSI or MACD
- 06With very long upper shadow (strong rejection)
- 01In the middle of a range with no clear resistance
- 02During low-volume, choppy consolidation
- 03Against the dominant higher-timeframe uptrend
- 04With short upper shadow (weak rejection)
- 05Above a major support that just held
- 06In news-driven, erratic price action
The shadow shows where sellers rejected price. Use that level as your stop if going short - if price reclaims it, the pattern failed.
Compare the full pattern set
Use the library to compare similar structures before deciding what the chart is actually building.