Gravestone Doji

A Gravestone Doji is a bearish reversal candlestick pattern that forms when the opening price, closing price, and low of a trading session are all at or near the same level, while the high is significantly above — creating a long upper shadow with no lower shadow and a very small or non-existent body. The pattern visually resembles an inverted T or a gravestone, from which it takes its name. It signals that buyers pushed prices significantly higher during the session but were overwhelmed by sellers before the close, driving the price back down to near the opening level — a rejection of higher prices. In Indian equity and F&O markets, a Gravestone Doji appearing at the top of an uptrend — especially near a key resistance level, 52-week high, or round number — is a high-probability bearish reversal signal, particularly when confirmed by above-average volume and followed by a bearish session. Traders typically use it as a signal to exit long positions or initiate short trades with a stop-loss above the Doji's high.