The general assumption is that the Gravestone Doji candle signals a reverse in trend, usually to the downside, is about to happen. It does, but according to Bulkowski it acts as a bearish reversal signal only 51% of the time, which is too close to random to be considered reliable.
The Gravestone Doji’s breakout performance is also just average, which perform best during downtrends with breakouts to the upside.
Like the other Doji candles, the Gravestone Doji’s open and closing points, or the candle’s body, is virtually the same, giving it a horizontal slash.
The difference lies in the fact that the Gravestone Doji’s open and close are located at the very bottom of the candle’s formation, and it also comes with a very long noticeable upper wick with no lower wick.
Use this Doji as confirmation that price might soon shift trending directions, but don’t make the mistake of relying too heavily on its accuracy as price can travel in either direction.