Look for the gravestone doji at the top of an uptrend.Wait for the next candel to close below the low of the gravestone doji to confirm the existence of bearish force. open a short position upon confirmation.place a stop loss above the high of the gravestone doji.
The Gravestone Doji is formed when the open and the close occur at the low end of the trading range. The price opens atthe low ofthe day and rallies from there, but by the close the price is beaten back down to the opening price.TheJapanese analogy is that it represents those who have died in battle. The victories ofthe day are all lostbythe endoftheday.AGravestone Doji,atthe topofthetrend,isa specific version of the Shooting Star. At the bottom, it is a variation of the Inverted Hammer.