Gravestone (Bullish)

Implication

The Gravestone (Bullish) candlestick indicates a possible reversal of the current downtrend to a new uptrend. The Gravestone (Bullish) is mostly seen as a bottom pattern indicating the end of a downtrend. This pattern is an indication of a financial instrument's SHORT-TERM outlook.

Description

The Gravestone consists of a long Upper Shadow and no Real Body (that is the open is equal to the close for the session). There should be no Lower Shadow for a Gravestone.

Trading Considerations

A small Lower Shadow is acceptable.

A small Real Body is acceptable.

A next session bar confirming bullish direction is recommended.

Criteria that Support

The longer the Upper Shadow the more significant the pattern.

Criteria that Refute

If a Lower Shadow exists and is too long then it will reduce the significance of this pattern.

If a Real Body exists and is too large then it will reduce the significance of this pattern.