Gravestone Doji Candlestick on Live Gold

What it shows

Each gravestone doji gets a red label marked GD over the candle’s high.

How Pravex works it out

1. The gravestone doji is one candle. Doji, for the gravestone doji, means a body of 5% of the range or less, high minus low, with a range above zero.
2. The lower shadow, from the bottom of the body to the low, may be no more than 5% of the range. That leaves the upper shadow at 90% of the range or more.
3. Example numbers, not a live price: high 2,018.0, low 2,004.0, open 2,004.3, close 2,004.1. The range is 14, the body 0.2 and the lower shadow 0.1. It passes.
4. This pattern has no trend input. The code marks the shape wherever it forms.

Settings

Setting	Default	What changing it does
Label colour	Red (#F23645)	Colours the GD label that sits over the high of the candle completing the gravestone doji, with the GD letters always in white.

How traders read it

The long upper shadow is a rally that failed within one candle, and the close at the low says the sellers had the last word. After a rise that is the bearish case. The high of the shadow is the level sellers defended, so a close above it cancels the idea.

Since the label skips the trend check, look left before you read it. A gravestone after a long fall shows buyers tried and failed, which fits the fall going on rather than ending. A gravestone at a level where price turned lower before is the stronger case, and a lower close on the next candle is the usual confirmation.

When it misleads

Without a trend test the label appears in ranges and in both trends, and most of those carry little meaning. Quiet hours make small ranges where the proportions are easy to meet. A body just over 5% of the range turns the candle into a shooting star shape or into nothing, though the eye sees no difference. On the newest candle the gravestone doji check reruns with every price change, so a label there can come and go until the candle closes.

Questions and answers

Is a gravestone doji bearish?

Pravex labels it bearish, because the whole rally inside the candle was sold. Its weight depends on where it forms: after a rise it is a warning, in a range it is usually noise.

What is the difference between a gravestone doji and a shooting star?

A shooting star has a small real body and needs a rise before it. A gravestone doji has a body of 5% of the range or less and no trend test in Pravex.

What is the opposite of a gravestone doji?

The dragonfly doji, which opens and closes at the high with a long lower shadow.

Related: Dragonfly Doji - Bullish, Shooting Star - Bearish, Doji, All Candlestick Patterns, every indicator.