It is bearish candlestick pattern that indicate reversal followed by market downtrend in the price action. Gravestone Doji is made when open, low and closing price are altogether close each other with an extended upper shadow. The long candle shadow indicate the bullish forces at the beginning of session are overcome by the bear’s forces at the end of session. It usually come before long term bearish trend in market. Gravestone Doji candlestick pattern tells the traders to take profit from bullish position and it’s time to enter bearish position.
Gravestone Doji can be found at the end of uptrend as well as at the end of downtrend but more commonly found at the end of uptrend. Remember one thing, never rely only on Gravestone Doji alone, wait until next candle provide confirmation of market reversal. If Gravestone Doji is accompanied with other technical analysis and indicators, it can be good guideline for profitable trades.