Gravestone Doji
BearishReversalBeginnerA rally to a new high in one candle, and every bit of it given back by the close.
Verdict: CautionBitcoin 4H: 8 trades, won 63%, avg trade −0.2% vs random day −0.1% (too few trades to judge). Backtest
Price has been grinding higher, candle after candle.
step 1/6
Trade rules
| Direction | Short (sell) |
|---|---|
| Entry | After an advance, a candle CLOSES below the gravestone doji's low within 3 candles. |
| Cancelled if | Price trades above the gravestone doji's high before that close. |
| Target | 2x the doji, projected from the breakout |
3 common mistakes
- Shorting the doji itself, before any close below its low.
- Accepting a real lower wick: then it is a plain doji or a shooting star, not a gravestone.
- Ignoring context: in a sideways market a gravestone has no rally to end.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 · too few trades to judge | 8 | 63% | −0.18% | −0.12% |
| US large caps (50) · 1D · 2016-2026 | 62 | 58% | +0.13% | −0.44% |
Verdict: CautionBeat a random entry in some markets, not in others. Bitcoin had too few signals to judge.
pattern +8.2%random −27%