Independent Forex Trading

Gravestone Doji

The gravestone doji candlestick pattern represents uncertainty in market direction. It is represented by a long upper tail, a small body with equal open and close prices, and no lower tail.

gravestone-doji.jpg

Gravestone Doji Candlestick Analysis

The gravestone doji candlestick pattern provides signals for a possible reversal in market direction. Therefore, the gravestone doji is most significant when it appears in an established trend. When the gravestone doji appears in an uptrend it represents a bearish signal, indicating a possible reversal to the downside. The opposite is true when the gravestone doji appears in a downtrend – in this case it represents a bullish signal with a possible reversal to the upside.

Confirmation

The gravestone doji candlestick pattern becomes increasingly relevant when the following occur:

  • The gravestone doji is has a long upper tail, a body composed of equal open and close values, and no lower tail.
  • It is preceded by a strong trend.
  • Confirmation candles are used to confirm the reversal.
  • Overbought or oversold indicators confirm a change in market direction.

Forex Trading Ideas

The gravestone doji may be traded alone, or with a combination of signals and/or indicators. For example:

  • Step 1 – Wait for a gravestone doji to appear during an established trend.
  • Step 2 - Confirm the trend reversal with at least one confirmation candle.
  • Step 3 – Further confirm overbought or oversold conditions using the RSI – Relative Strength Index*
  • Once conditions 1 – 3 are met place an entry order.

*Additional confirmation ideas – confirm the gravestone doji formation when it appears outside of the Bollinger Band or when the Stochastic Oscillator signals overbought or oversold conditions.

Never Miss a Trade Opportunity Again

Candlestick Pattern Recognition Robot

Continuously monitor all currency pairs and time compressions around the clock for important candlestick patterns using the Candlestick Pattern Recognition Robot. Get Your Copy Today.

Customization

By adding additional confirmation signals and indicators the evening star candlestick pattern has the potential to become increasingly accurate in predicting a trend reversal. FxSpyder provides integrated customization tools for hands free trade automation using the JavaScript Object Model. Full details are included in the Help Section of the FxSpyder trading application.

Want Fast Robot Customizations?

FxSpyder provides complete script customization services with a short turn-around time and for a reasonable price. Plus, who better to create your FxSpyder autotrading scripts than the FxSpyder Programming Team. Contact Us Today.

Download Free Candlestick Pattern Recognition Robot
Live Chat