The Gravestone Doji pattern is an indecision pattern which indicates a possible reversal and is either bullish or bearish depending on where it appears in a trend.

A Gravestone Doji at the top of a trend is bearish because the long upper shadow suggests that after Bulls took the market higher, a massive amount of sellers stepped in to take the price all the way back down to the low of the candlestick.

gravestone-doji-candlestick

A Gravestone Doji at the bottom of a trend is bullish because the long lower shadow suggests that the forces of supply and demand are nearing a balance and the direction of the trend may be nearing a major turning point.

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