Technical Definition
A bearish reversal pattern where the open, low, and close prices are nearly the same, while the candle has a long upper shadow.
The market moved sharply upward during the session, but sellers pushed the price all the way back down before the close. This pattern reflects clear rejection of higher prices.
Buyers attempted to push prices higher but failed.
Market Psychology
Context
Market is usually in an uptrend Buyer confidence is high
Rally
Buyers push price aggressively higher Breakout traders enter Selling pressure increases at highs
Rejection
Sellers overpower buyers Price closes near the session low Buyer confidence weakens
Pattern Anatomy
Open ≈ Close ≈ Low
Sellers managed to close price at the session low.
Very Long Upper Wick
Buyers pushed consistently higher, but failed to hold.
No/Negligible Lower Wick
Price never really went below the open until the very end.
Extremely Small Real Body
Total collapse of the rally.
Pattern Rules
Opening price ≈ Closing price ≈ Low
Defines the Gravestone structure.
Real body is almost non-existent
Doji characteristic.
Upper shadow is very long
Rejection of highs.
Lower shadow is absent or extremely small
No buying pressure at lows.
Appears after an uptrend
Reversal context.
Signal Confirmation
- A bearish candle following the Gravestone Doji
- Failure of price to move above the Doji high
- Alignment with resistance zones