Bullish Gravestone Doji Pattern

by · December 31, 2009

BULLISH GRAVESTONE DOJI PATTERN (BGDP)
the graves of the bears who died defending their territory

Characteristics:
1. The market is on a downtrend;
2. There is a black body formed at the lower end of the trading range;
3. On Day 2, we see a Doji which does not have a lower shadow; and
4. No gap down is required.

Brief Explanation:
The BGDP is a specific Doji with opening and closing prices equal to the low of the day. It is a bottom reversal pattern. The BGDP is similar to the Bullish Inverted Hammer Pattern. It occurs in a downtrend and represents a possible trend reversal.

Notes:
1. The Gravestone Doji represents the graves of the bears who died defending their territory
2. This pattern requires confirmation on the next day (through an opening above the Gravestone Doji’s body).