Gravestone Doji

The Gravestone Doji is a candlestick patterns indicator used in Skyrexio Strategy Builder for pattern recognition and reversal/continuation signals.

Introduction

The Gravestone Doji is a bearish reversal candlestick pattern that signals potential SHORT opportunities or LONG position exits. This single-candle pattern features open, low, and close prices at the same level with a long upper shadow, indicating strong rejection of higher prices and potential selling interest.

How Gravestone Doji Works

Gravestone Doji is a single-candle bearish reversal pattern with specific characteristics:

• Open, low, close equal - These three prices are at the same level • Long upper shadow - Significant upper shadow showing price rejection • No lower shadow - Little to no lower shadow • Inverted T-shape - Creates a distinctive inverted T or gravestone shape • Context matters - Most effective at resistance levels or after uptrends

Pattern Psychology: The pattern shows buyers drove price significantly higher during the session, but sellers stepped in with such force that they pushed price all the way back to the opening level. This complete rejection of higher prices demonstrates strong selling interest.

Key Characteristics

Attribute	Details
Category	Candlestick Patterns
Type	Bearish Reversal Signal
Primary Use	SHORT entries, LONG exits
Timeframe	All timeframes supported (1m to 1M)
Confirmation	Volume, resistance levels, trend context

Strategy Applications

🔴 SHORT STRATEGY (Primary Use)

Gravestone Doji is primarily a SHORT signal - enter short positions when the pattern appears at resistance levels.

Base Entry Order (SHORT)

Base Order Condition: Gravestone Doji Pattern Detected
First Condition: Gravestone Doji
Timeframe: 1H

Additional Confirmation:
First Condition: Volume
Timeframe: 1H  
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

Take Profit Orders (SHORT)

Rule 1: Exit condition - Target reached at support level
First Condition: Close Price
Timeframe: 1H
Operator: Less Than
Second Condition: Low Price
Timeframe: 1H

OR

Rule 2: Exit condition - Oversold momentum warning
First Condition: RSI
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 25

OR

Rule 3: Exit condition - Bullish reversal pattern detected
First Condition: Dragonfly Doji
Timeframe: 1H

Stop Loss Orders (SHORT)

Rule 1: Stop loss - Pattern invalidated (price above gravestone high)
First Condition: Close Price
Timeframe: 1H
Operator: Greater Than
Second Condition: High Price
Timeframe: 1H

OR

Rule 2: Stop loss - Volume surge breaks bearish momentum
First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

🟢 LONG STRATEGY (Secondary Use)

Counter-Trend Risk: Using Gravestone Doji for LONG entries is high-risk and should only be considered in extreme oversold conditions.

Take Profit Orders (LONG) - Exit existing positions

Rule 1: Exit condition - Gravestone Doji signals trend reversal
First Condition: Gravestone Doji
Timeframe: 1H

OR

Rule 2: Exit condition - Resistance level reached
First Condition: Close Price
Timeframe: 1H
Operator: Greater Than
Second Condition: High Price
Timeframe: 1H

Risk Management Guidelines

Position Sizing

Strategy Type	Position Size	Conditions
SHORT Strategy	Standard	Pattern appears at resistance
LONG Strategy	Exit signal only	Counter-trend not recommended
High Volume	Increase confidence	Can use larger size
Low Volume	Reduce size	Wait for confirmation

Best Practices

For SHORT Strategies

1. Resistance context - Most effective at key resistance levels

2. Volume confirmation - Ensure higher volume on gravestone candle

3. Shadow length - Longer upper shadow indicates stronger reversal

4. Follow-through - Confirm with next candle's bearish action

Market Conditions Analysis

Market Type	SHORT Strategy Effectiveness
Uptrend	🟢 High (reversal signal)
Downtrend	🟡 Medium (continuation)
Ranging	🟢 High (at resistance)
High Volatility	🟢 High (clear signals)
Low Volume	🔴 Low (wait for confirmation)

Related Patterns

Pattern	Relationship	Link
Dragonfly Doji	Opposite signal	Dragonfly Doji
Hanging Man	Similar bearish signal	Hanging Man
Doji	Neutral variant	Doji

Conclusion

Gravestone Doji is primarily a SHORT signal indicating strong rejection of higher prices and potential downward reversal. The pattern shows powerful selling interest at higher levels.

Key Takeaways

• PRIMARY USE: SHORT entries at resistance levels

• SECONDARY USE: LONG exits when holding positions

• ALWAYS: Confirm with Volume and resistance level context

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