March 26, 2021
By Bapi Sasmal
Online Business, stock market, Technical Indicator
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What Is Gravestone Doji? – Dragonfly Doji & Gravestone Doji Pattern

Hello Friends today we will explain Doji Candle. What Is Gravestone Doji? – Dragonfly Doji & Gravestone Doji Pattern

Before Explaining Doji I want to give you a basic idea of Doji Candle
Basically, candles are 2 types.

Bullish candle
Bearish candle

Bullish candle’s Specific color is Green & the Bearish candle’s Specific color is Red.

The bullish candle represents Bull Market or Bullish Reversal meaning Market or stock Positivity & the Bearish candle represents Market or stock Negativity.

Normally Traders are using green candle & Red Candle for easy understanding,

Okay, Now Below I mentioned types of candles & I will explain Doji Candle & other Important candles.

Doji Candle
Shooting Star Candle
Hanging man
Hammer
Inverted Hammer
Bullish Engulfing
Bearish Engulfing
Harami
Morning Star
Evening Star
Tweezer Top
Tweezer Bottom
Falling Three
Marubuzu

What is Shadow –

When any candle’s real Body showing rejection from the upside or downside, after closing this candle, High price or low price create Shadow.

Why Create a Shadow?

Actually when selling pressure creates, means Seller qty greater than buyer qty on the particular candle, that’s the time the seller creates rejection & pushes this stock downside. That’s time to create a shadow.

Also when the buyer greater than the seller, that’s time buyer pushes this stock upside. That’s time to create a shadow.

Doji

Actually, Doji is one type of Reversal or confusion Candle. When a full candle close near middle Point, means candle’s higher price & lower Price’s middle, that’s called Doji candle.

Types Of Doji
. Gravestone Doji
. Dragon Fly Doji

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Gravestone Doji – When a real full candle falls from a high price & close near the closing price

and creates a big shadow, that’s called Grave stone Doji. Basically, we can found this type of candle near the bottom or top.

Grave stone Doji look like a 180 Degree of “T”

Dragon Fly Doji – When a real full candle closes near a higher price and creates a big shadow, that’s called Dragon Fly Doji.

Dragon Fly Doji look like a “T”

DragonFly Doji – bullish reversal pattern

Use of Doji – Above I explained Shadow. If Any Stock’s technical Chart Gravestone Doji creates, than high chance stock will fall, the stock trend is bearish. Because Gravestone Doji push this stock downside.

If Any Stock’s technical Chart Dragon Fly Doji creates, than high chance stock will go up, the stock trend is Bullish. Because Dragon Fly Doji push this stock price upside.

How To Identify Trend Reversal Candle?

* Just Find

Dragon Fly Doji Candles because it is bullish reversal pattern or candle, Buy above candle’s high price & low price is your stop loss, the target set as your strategy.

Shooting Star Candle

Shooting Star is Bearish Reversal Candle, basically when stock open gap up(top) & try to fall from higher price, that’s time, create Shooting Star Candle. Sometimes stock price suddenly increases & reach near RSI Over Bought Zone. That’s time to make Shooting Star Candle.

The upper shadow is at least 2 times the size of the real body.

Candle Color Will be – Red

Use – First I said it is a Bearish Reversal Candle, so we can short sell that’s time. Remember after closing Shooting Star Candle, and then we can short sell.

Hammer

Every Body Know how to looks, Hammer. Also, this candle looks the same, as Harmer.

The lower shadow is at least 2 times the size of the real body. Same rules Rejection from the lower side. Basically, when any stock’s price falls deeply, near above 3% & creates an oversold Zone, that’s time to make Hammer. Candle Color may be green or red, does not matter.

So Hammer is a Bullish Reversal Candle. We can buy the stock when we will see this type of candle. (Read What is Bullish Reversal)

Remember – The lower shadow is at least 2 times the size of the real body.

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Last Word

I hope you like my article “What Is Gravestone Doji? – Dragonfly Doji & Gravestone Doji Pattern” your knowledge has increased a lot. If I have made a mistake in this article or if you have any questions, feel free to leave a comment in the comments box and I will try to answer your question as soon as possible.