Gravestone Doji-How To Take Amazing Trades With It

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GRAVESTONE DOJI DEFINITION

What is a gravestone doji candlestick and how doe it look like and where does it form? This gives you a good definition and explanation of gravestone doji:

Gravestone Doji

 

THE GRAVESTONE DOJI IS A BEARISH REVERSAL CANDLESTICK PATTERN

You should be keeping an eye out for the gravestone doji during an uptrend…and when you see it, it may be an indication that the trend may start to head down-a downtrend.

Gravestone Doji Reversal Candlestick

CAN YOU TRADE THE GRAVESTONE DOJI CANDLESTICK PATTERN ALL BY ITSELF?

Yes and No…

I will explain below:

  • If there was a clearly identifiable resistance level on a currency pair and price reached that level and formed a gravestone doji, I will take that trade.
  • if the gravestone doji just  happened to be formed anywhere on a chart that did not have significance to its location or level, I will not take that trade.

Gravestone Chart Pattern

Now, tell me, will you take a sell trade at point 1 or point 2 on the chart above?

If you say point 1, you are an idiot…because there’s absolutely nothing to give you a reason to say that the market will head back down.

However, on point 2, you notice that on a previous occasion, the price had moved down from a resistance level and now the price is climbing back up to that resistance level.

So even before that point 2 gravestone doji formed, if price was heading up to that resistance level, you should know you now have a good reason to sell at that level.

Then the gravestone doji formed right at the resistance level at point2. That alone gives you sufficient confirmation to place a sell order.

Your stop loss should be placed a few pips outside of the resistance level.

This is how you can trade a gravestone doji all by itself using resistance levels.

 

OTHER PLACES WHERE YOU CAN TRADE GRAVESTONE DOJI

There is a handful of forex trading strategies which you can use to trade the gravestone doji candlestick pattern. I will list only a few here but you can browse this forex trading site and discover lots of other forex trading strategies which you can use the gravestone doji.

(1) At Touch of Downtrend Trendlines by using the trendline trading strategy:

Gravestone Doji In A Downtrend

(2) A Fibonacci Levels

Or you can look to trade the gravestone doji on fibonacci levels similar to this daily chart forex trading system:

 

Trading Gravestone Doji With Fibonacci Level

 

(3) Trade Gravestone Doji’s On Downward Bounce Of Moving Averages

You can trade gravestone doji’s by using forex trading strategies similar to the floor traders forex trading strategy or 200 ema moving average trading strategy.

 

IN SUMMARY

  • Gravestone doji’s are bearish reversal candlestick patterns, you look for them when market is in an uptrend to catch those downward moves.
  • trading gravestone doji’s all by itself does not make any sense if it does not form in areas of resistance.
  • these resistance levels can be horizontal resistance levels from previous price rejection levels, or resistance provided by fibonacci levels or resistance provided by the bounce of moving averages similar to the  forex trading strategies listed above in (3) like the floor traders method and the 200 ema moving average trading strategy.

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