Gravestone Doji
The Gravestone Doji has a long upper shadow with open, close, and low all near the same level at the bottom of the candle. It shows that buyers pushed prices significantly higher during the period, but sellers fought back and drove the price all the way back down to the open. At the top of an uptrend, it's considered a bearish reversal signal — the visual opposite of the Dragonfly Doji.
Gravestone Doji candlestick pattern diagram
Pattern Anatomy
- Open, close, and low are all at or very near the same price (bottom of the candle).
- Long upper shadow showing significant intra-period buying that was fully reversed.
- Little to no lower shadow.
- Shaped like an inverted "T" — resembles a gravestone, hence the name.
How to Interpret
- At the top of an uptrend: strong bearish reversal signal — buyers tried to extend the rally but sellers overpowered them.
- At the bottom of a downtrend: less reliable, but worth monitoring.
- The longer the upper shadow, the more dramatic the failed rally.
- Look for bearish confirmation on the next candle (a close below the Gravestone's low).
- Particularly meaningful at resistance levels.
How Engulfy Detects the Gravestone Doji
- Must first qualify as a Doji (body is very small relative to the total range).
- Lower shadow must be very small (open/close near the low).
- Upper shadow must be dominant, making up the majority of the total range (long upper tail).
A Gravestone Doji will also register as a regular Doji. Engulfy reports both patterns when detected.
Expert References
Steve Nison calls the Gravestone Doji the bearish counterpart to the Dragonfly Doji. He considers it especially potent when it appears at the top of a rally, since the long upper shadow visually represents a failed attempt by buyers to sustain higher prices.
Thomas Bulkowski's statistical research found a reversal rate of roughly 55-60% when the Gravestone Doji appears at the top of an uptrend — meaningful, but far from a guarantee. As with most single-candle patterns, confirmation improves the odds considerably.
Controversy & Limitations
The Gravestone Doji has a modest statistical edge at best. It can appear as noise in volatile or choppy markets where long upper wicks are common regardless of trend direction. The name "gravestone" sounds dramatic, but the signal is only moderately reliable without confirmation from subsequent price action, volume, or other indicators. Always treat it as a warning sign rather than a definitive call to action.