Gravestone Doji / 塔場
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A variant of the doji with a long upper shadow, where the open, close, and low are at approximately the same price level. It indicates that heavy buying occurred during the session but was completely reversed by the close. When appearing at the top of an uptrend, it suggests buying pressure is exhausting and serves as a topping signal.
Enter short when the next candle after the Gravestone Doji closes as a bearish candle. Entering when price drops below the Gravestone Doji's low is also effective.
Project 1 to 1.5 times the upper shadow length (high to low) downward from the low to determine the price target. Or target the nearest support line.
Place a stop-loss slightly above the high (the tip of the upper shadow) of the Gravestone Doji.
High volume when the Gravestone Doji appears increases the reliability of the topping signal. Heavy volume with a long upper shadow indicates that buying was rejected.