Gravestone doji and shooting star candle sticks

Gravestone Doji is a pattern in which the opening and closing prices are at the low of the day. The Bearish Gravestone Doji Pattern is a top reversal pattern. It appears during an uptrend representing a possible reversal of trend just like its cousin Bearish Shooting Star Pattern.

Recognition Criteria:
1. Market is characterized by uptrend.
2. We see a white candlestick at the higher end of the trading range in the first day.
3. Prices open with a gap and we see a Doji with no lower (or almost no) shadow on the second day.
4. Upper shadow of the doji is usually long.


Explanation:

Gravestone Doji after a rally has bearish implications for the following reason. The market opens on the low of the day. Then prices start to rally (preferably to a new high). The rally cannot be sustained during the day and prices plummet to the day’s lows meaning trouble for longs. The Gravestone Doji represents the graves of those bulls that have died defending their territory.

Important Factors:

The Bearish Gravestone Doji Pattern has more bearish implications than a Bearish Shooting Star Pattern. The longer the upper shadow and the higher the price level, the more bearish the implications of the Bearish Gravestone Doji Pattern will be. A confirmation is required on the following day to be more certain about the bearish implications of the Bearish Gravestone Doji Pattern. Confirmation may be in the form of the next day opening below the Gravestone Doji. The larger the gap the stronger the confirmation will be. A black candlestick with lower prices can also be another form of confirmation.



Shooting star ...


video..http://www.youtube.com/watch?v=mt2_bm2Xy-4&feature=related

The Shooting Star candlestick formation is a significant bearish reversal candlestick pattern that mainly  occurs at the top of uptrends. The Shooting star formation is created when the open, low, and close are roughly the same price.  Also, there is a long upper shadow, generally defined as at least twice the length of the real body. When the low and the close are the same, a bearish Shooting Star candlestick is formed and it is  considered a stronger formation because the bears were able to reject the bears completely plus  the bears were able to push prices even more by closing below the opening price. The Shooting Star formation is considered less bearish, but nevertheless bearish when the open and  low are roughly the same. The bears were able to counteract the bears, but were not able to bring  the price back to the price at the open. The long upper shadow of the Shooting Star implies that the market tested to find where resistance  and supply was located. When the market found the area of resistance, the highs of the day, bears  began to push prices lower, ending the day near the opening price. Thus, the bullish advance upward was rejected by the bears. Just have a look how shooting star sending de reddys lab in deep red ...