Gravestone Doji pattern
Candlestick Gravestone
doji formation has the open, low and close equal and the high
creates a long upper shadow. We have that gravestone is a candlestick
looks like an upside down "T" with a long upper shadow and
no lower shadow. Pattern Gravestone doji shows that buyers
control trading and drive pricesupward during the session. But, by
the end of the session, sellers are able to overturn the prices down
to the level of the opening.
Why Gravestone is a
pattern of indecision in the market?
Because it provides an
indication that depends on the future price action for confirmation.
From this follows that a pattern gravestone is not very reliable for
trading, so it is a wait signal.
Even though the long
upper shadow shows a incomplete rally, the intraday high signals
evidence of an buying pressure. After a downtrend, long black
candlestick or at support, emphasis turns to the new indications of
buying pressure and a potential bullish reversal. After a long
uptrend, long white candlestick or at resistance, focus turns to the
failed rally and a potential bearish reversal. Bearish or bullish
confirmation is required for both conditions.
Two versions of the
gravestone doji, which can often halt rallies dead in their tracks as
it connotes that prices rose and then retraced all of their gains by
returning to their open.
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