Indecision Candlestick Pattern Gravestone doji ~ forex trading times south africa
Gravestone Doji pattern
Candlestick Gravestone doji formation has the open, low and close equal and the high creates a long upper shadow. We have that gravestone is a candlestick looks like an upside down "T" with a long upper shadow and no lower shadow. Pattern Gravestone doji shows that buyers control trading and drive pricesupward during the session. But, by the end of the session, sellers are able to overturn the prices down to the level of the opening.
Why Gravestone is a pattern of indecision in the market?
Because it provides an indication that depends on the future price action for confirmation. From this follows that a pattern gravestone is not very reliable for trading, so it is a wait signal.
Even though the long upper shadow shows a incomplete rally, the intraday high signals evidence of an buying pressure. After a downtrend, long black candlestick or at support, emphasis turns to the new indications of buying pressure and a potential bullish reversal. After a long uptrend, long white candlestick or at resistance, focus turns to the failed rally and a potential bearish reversal. Bearish or bullish confirmation is required for both conditions.
Two versions of the gravestone doji, which can often halt rallies dead in their tracks as it connotes that prices rose and then retraced all of their gains by returning to their open.
Gravestone Doji Candlestick Pattern Quiz
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