Wick

Dragonfly & gravestone

Candles 101

Dojis with a tail

Dragonfly: no upper wick, long lower tail. Sellers flushed it — a flush is a fast drop that panics weak holders out — and buyers reclaimed everything (bullish at lows). Gravestone is the mirror: buyers tried, failed, bearish at highs.

Check yourself

A gravestone doji at all-time highs is…

  1. Bullish continuation
  2. A bearish warning: the breakout attempt was fully rejected correct
  3. Meaningless

Price explored higher and closed back at the open. The rally attempt died in one candle.

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