What is Gravestone doji in technical analysis?

The **Gravestone Doji** is a candlestick pattern in technical analysis that signals a potential bearish reversal, especially after an uptrend. It is characterized by a small real body near the bottom of the candlestick, with a long upper shadow and little or no lower shadow. The pattern looks like a "T" or gravestone shape. ### Key Features: - **Long upper shadow**: The price moves significantly higher during the trading period but closes near the opening price. - **Small real body**: The open and close prices are close to each other, typically near the bottom of the candlestick’s range. - **No lower shadow**: There is little or no lower shadow, showing that the price did not fall significantly during the period. ### Interpretation: The Gravestone Doji suggests that while buyers initially pushed the price higher (indicated by the long upper shadow), sellers took control and drove the price back down by the close. This shift in momentum can signal a weakening of the uptrend and the potential start of a downtrend. ### Trading Strategy: The Gravestone Doji is more significant when it appears after a strong uptrend. Traders often look for confirmation, such as a bearish candlestick pattern following the Doji, to validate the potential for a reversal and enter short positions.