The Gravestone indicates that the prior trend is about to end and may reverse or move sideways. The Gravestone is mostly seen as a top pattern indicating the end of an uptrend. This pattern is an indication of a financial instrument's SHORT-TERM outlook.
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.
A small Lower Shadow is acceptable.
A small Real Body is acceptable.
Criteria that Supports
The longer the Upper Shadow the more significant the pattern.
Criteria that Refutes
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.