Page 12 - Module 13 japanese Candlesticks
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Module 13 – A-Z of Japanese Candlesticks
Gravestone Doji
The Gravestone Doji is a significant bearish reversal candlestick pattern that mainly occurs at the top
of uptrends.
The Gravestone Doji is created when the open, low, and close are the same or about the same price
(Where the open, low, and close are the same price is quite rare). The most important part of the
Gravestone Doji is the long upper shadow.
The long upper shadow is generally interpreted by technicians as meaning that the market is testing
to find where supply and potential resistance is located.
The construction of the Gravestone Doji pattern occurs when bulls can press prices upward.
However, an area of resistance is found at the high of the day and selling pressure can push prices
back down to the opening price. Therefore, the bullish advance upward was entirely rejected by the
bears.
Gravestone Doji Example
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