Short answer
What is a gravestone doji?
A gravestone doji is a single candle whose open, close and low are at almost the same price, with a long upper wick and little or no lower wick, so it looks like an upside-down T. Buyers pushed price up, but sellers brought it all the way back by the close. After a rise, at a supply zone, it leans bearish once the next candle closes below its low.
Key takeaways
- A gravestone doji opens, closes and makes its low at about the same price, leaving a tiny body at the bottom and a long upper wick.
- It is the no-body version of a shooting star; if the body is clearly visible, the candle is a shooting star instead.
- After a rise it leans bearish; after a fall it shows indecision at most; inside a sideways range it means little.
- By the 50% rule it is a base candle, so at a fresh supply zone it is part of the base and the strong red candle after it is the leg out.
- Confirmation: the next candle closes below the gravestone's low. A short trade's stop goes above its high or the zone's distal line, whichever is higher.
- Most cash-market swing traders use it to book profit or tighten the stop on a long position; short trades in the cash market must be closed the same day.
What is a gravestone doji?
A gravestone doji is the mirror image of a dragonfly doji. The candle opens, buyers push price well above the open, and sellers then drive it all the way back, so it closes at or near the open, which is also the low of the period. The long upper wick is the rally buyers built and then lost. After a rise, that shows the buyers who drove the move were turned back at that price.
- Open and close almost equal: the body is no more than about 5–10% of the high-to-low range.
- Body at the bottom: the open, close and low are at or very near the same price.
- Long upper wick: it makes up almost the whole candle.
- Little or no lower wick.
- Context: it needs a rise before it to lean bearish.
Standard doji
Long-legged doji
Dragonfly doji
Gravestone doji
Every doji opens and closes at almost the same price. The position of that tiny body and the length of the wicks give each type its name.
Is a gravestone doji bearish?
Mostly, but only after a rise. The shape shows that buyers were rejected during one period. How much that matters depends on the trend before it and on whether sell orders were waiting at that price.
| Where it forms | How it is read | What to watch next |
|---|---|---|
| After a rise, at a fresh supply zone | Leans bearish: sellers absorbed the buying where sell orders were waiting | A red candle closing below the gravestone's low |
| After a rise, far from any zone | A possible pause in the rally | Strong uptrends often absorb one rejection and keep rising |
| After a fall | Indecision; some traders read it like an inverted hammer with no body | A green candle closing above its high, and even then it is a weak sign |
| Inside a sideways range | Ordinary indecision | Usually nothing |
In short, a gravestone doji leans bearish after a rise, especially at a supply zone, and says little elsewhere. It is not a sell signal on its own; the next candle decides.
What is the difference between a gravestone doji and a shooting star?
They are the same idea with different bodies. A shooting star has a small but visible body in the lower third of its range and an upper wick at least twice that body. A gravestone doji has almost no body at all, because it closes right where it opened. Both form after a rise, both show buyers rejected near a high, and both need a confirmation candle.
| Candle | Body | Long wick | Usual reading |
|---|---|---|---|
| Gravestone doji | Almost none, at the low | Upper | Bearish lean after a rise |
| Shooting star | Small, in the lower third | Upper, at least twice the body | Bearish after a rise, needs confirmation |
| Inverted hammer | Small, in the lower third | Upper, at least twice the body | Weak bullish sign after a fall |
| Dragonfly doji | Almost none, at the high | Lower | Bullish lean after a fall |
Traders disagree about which is the stronger warning. Some prefer the gravestone, because price gave back the entire rise rather than most of it; others prefer the shooting star. In practice the difference is small. Where the candle forms and what the next candle does matter much more than whether the body is ₹1 or ₹8.
After a rise, the shooting star's long upper wick shows buyers were rejected. The next red candle confirms it and leaves the area, which becomes a supply zone.
Why does location matter more than the shape?
By the 50% rule, a candle whose body is more than half its high-to-low range is an exciting candle, and one whose wicks make up more than half is a base candle. A gravestone's wicks make up 90% or more of its range, so it is always a base candle. On its own, a base candle only shows that buyers and sellers were balanced for one period. It matters when it sits where sell orders are waiting.
A gravestone reaches a supply zone in one of two ways. Price rallies back into an existing fresh supply zone and the upper wick reaches into it: the pending sell orders there absorbed the buying. Or the gravestone forms after a strong green candle and a strong red candle then leaves it: the gravestone is the base of a new Rally-Base-Drop zone, and the red candle is the leg out.
A gravestone in the middle of a strong rally, with no zone above and no strong red candle after it, is often just a pause; strong uptrends regularly absorb one rejection candle and keep rising. The same candle at a fresh supply zone, ideally inside a higher-timeframe supply zone, has the waiting sell orders behind it.
How do you use a gravestone doji in a trade?
Most cash-market swing traders use a gravestone at a supply zone to manage a long position they already hold: book part of the profit, exit, or move the stop up. In the Indian cash market, a short position must be squared off the same day, so traders who want to hold a short for several days use stock futures or options instead.
- Check the rise and the location at a fresh supply zone on your trading timeframe.
- Let the gravestone close, then wait for the next candle.
- Confirmation: a candle closes below the gravestone's low, preferably an exciting red candle.
- For a long position: book profit, exit or tighten the stop. For a short trade: enter just below the confirmation close.
- Place a short trade's stop just above the gravestone's high or the zone's distal line, whichever is higher, with a target of at least twice the risk that is clear of the next demand zone.
What are common mistakes with the gravestone doji?
- Calling it bearish after a fall: there it is indecision at best, not a bearish sign.
- Selling before the candle closes: a mid-session gravestone can still close as a strong green candle.
- Skipping confirmation: the gravestone is a question; a close below its low is the answer.
- Stop inside the upper wick: the wick is where price has already been; a short trade's stop belongs above it, or above the distal line if that is higher.
- Holding a cash-market short overnight: cash-market shorts must be squared off the same day.
- Ignoring the higher timeframe: a daily gravestone inside a strong weekly uptrend, far from supply, often leads to a pause rather than a fall.
Frequently asked questions
Is a gravestone doji bearish?
After a rise, yes, it leans bearish: buyers pushed price up and sellers brought it all the way back. It becomes useful when the next candle closes below its low, ideally at a fresh supply zone. After a fall it shows indecision and is a weak sign at most.
What is the difference between a gravestone doji and a shooting star?
Both have a long upper wick and form after a rise. A shooting star has a small but visible body near its low, while a gravestone doji has almost no body because it closes where it opened. Both need a lower close on the next candle, and location matters more than which one it is.
Can I short a stock on a gravestone doji in the cash market?
Only intraday. In the Indian cash market, short positions must be squared off the same day, so a short held for days needs stock futures or options. Most swing traders use a gravestone doji at a supply zone to book profit or protect a long position instead.
Where is the stop loss for a gravestone doji trade?
For a short trade, just above the gravestone's high, or above the supply zone's distal line if that is higher. The high is where sellers took over; a close above it means buyers have pushed through.
What does a gravestone doji mean after a downtrend?
Very little on its own. After a fall it shows buyers tried to push higher and failed, which is indecision rather than a bearish signal. Some traders read it like an inverted hammer with no body, but it needs a strong green candle closing above its high before it means anything.
Gravestone doji kya hai?
Gravestone doji ek candle hai jiska open, close aur low lagbhag same price par hote hain aur upar lambi wick hoti hai. Chadhne ke baad, supply zone par, yeh bearish sign hai, lekin tabhi jab agli candle iske low ke neeche close kare.
Put this into practice
Work out the numbers before the market moves, then let an alert bring you back to your own plan.
Educational content only. Nothing here is investment advice or a recommendation to buy or sell any security. Chart diagrams use illustrative prices, not market data. Trading involves risk of loss; verify prices independently and apply your own risk process.