🕯️ Candlestick Patterns

Gravestone Doji Complete Explanation + How to Use Downside Reversal

We provide a complete explanation of the shape of the Tombstone Doji candle, the difference from the Dragonfly Doji candle, how to interpret a downside signal when it appears at a high point, and the futures trading short entry strategy.

📅 2025-12-11
#Gravestone doji#gravestone doji#doji bearish signal#inverted T candle#futures trading short
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What is Gravestone Doji?

A tomb doji is a doji candle shaped like an inverted T (⊤) where the opening, closing and low prices are all the same and only the upper tail is long. Named after its resemblance to a tombstone, it is a strong bearish reversal signal that appears at the top of an uptrend.

Doji
⚪ Neutral

Interpretation: The price soared strongly during the day, but eventually the selling pressure brought the price down to the opening price. A complete defeat for the buying power.


Tombstone Doji vs. Normal Doji vs. Dragonfly Doji

patternshapesignal directionAppearance location
General DojiCrosshair (+)Neutral (slowing trend)Anywhere
Monument DojiInverted T (⊤)🔴 Decline reversalUptrend high
Dragonfly DojiT-shaped (T)🟢 Upside reversalDowntrend Bottom

Reliability conditions

Strong Signal Checklist:

  • After an uptrend or near the resistance line
  • The upper tail must be sufficiently long (2 times the body height+)
  • With RSI above 70
  • The next bar closes as a downward bar.
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Futures trading short strategy

Entry: Opening or closing price after the next bar is confirmed as a falling bar 
Stop loss: Above the high point of the tombstone doji (top tail tip) 
Target: Nearest support or EMA 50

Note: A pattern similar to Shooting Star. 
Because it is a doji, it indicates a stronger buying/selling balance. 

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