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Gravestone Doji

What Is a Gravestone Doji?

The term gravestone doji refers to a bearish indicator commonly used in trading by technical analysts.

A gravestone doji is a bearish reversal candlestick pattern formed when the open, low, and closing prices are all near each other with a long upper shadow.

This long upper shadow suggests that the bullish advance at the beginning of the session was overcome by bears by the end of the session.

This pattern often precedes a longer-term bearish downtrend.

Understanding the Gravestone Doji

A gravestone doji is a visual indicator used in technical analysis to signal a potential bearish reversal.

It resembles an inverted T, with the open, low, and closing prices being close to one another, and a long upper shadow extending above them.

For this pattern to be valid, the open, low, and closing prices must be very close to each other, and the upper shadow must be relatively long, indicating a failed bullish advance.

The market narrative suggests that bulls initially push prices higher, but bears ultimately drive the price back down to near the opening level by the session’s close, indicating a loss of bullish momentum.

Although the gravestone doji can sometimes be found at the end of a downtrend, it is more commonly seen at the end of an uptrend.

Traders typically wait for the next candle to confirm the reversal before acting on a gravestone doji.

Trading the Gravestone Doji

Traders often use the gravestone doji as a signal to exit long positions or initiate short positions.

However, it’s important to use this candlestick pattern in conjunction with other forms of technical analysis for confirmation.

For example, traders might look at the volume during the session or use technical indicators like the relative strength index (RSI) or moving average convergence divergence (MACD) to confirm the pattern’s reliability.

A typical strategy might involve placing a stop-loss just above the upper shadow of the gravestone doji to manage risk.

The pattern is more effective when it occurs after a strong uptrend, and its significance increases with higher trading volumes.

Gravestone Doji vs. Dragonfly Doji

The opposite of a gravestone doji is a dragonfly doji.

While the gravestone doji has a long upper shadow and signals a potential bearish reversal, the dragonfly doji has a long lower shadow and may signal a bullish reversal.

Both patterns reflect indecision in the market, but they occur in different contexts.

The dragonfly doji often appears after a downtrend and suggests that bears have lost control, potentially allowing bulls to take over.

Limitations of a Gravestone Doji

While the gravestone doji can be a useful tool for identifying potential market reversals, it has limitations.

The pattern’s reliability increases when confirmed by other technical indicators or volume analysis, but it should not be used in isolation.

Additionally, the gravestone doji does not provide precise entry and exit points, so traders must use other tools and strategies to manage their trades effectively.

Concluding Thoughts

The gravestone doji is a valuable tool in the technical analyst’s toolkit, signaling potential bearish reversals in the market.

However, like all technical patterns, it should be used in conjunction with other indicators and analysis techniques to confirm its signals and make informed trading decisions.

Understanding how to identify and trade the gravestone doji can help traders minimize losses and capitalize on market trends, but it’s essential to remain cautious and use comprehensive strategies to manage risks effectively.

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Long-legged Doji (Rickshaw Man Doji)

What Is Rickshaw Man?

The rickshaw man is a type of long-legged doji candlestick where the body is found at or very near the middle of the candle.

This pattern signals indecision in the marketplace, as indicated by its long upper and lower shadows and a small real body near the center of the candle.

rickshaw man

Understanding Rickshaw Man

A candlestick shows the high, low, open, and close prices.

In the case of the rickshaw man, the open and close prices are at or very close to the same level, creating a doji.

The high and low are far apart, leading to long shadows on the candlestick.

This formation indicates that both bulls and bears exerted control over a security’s price at different times during the same period, resulting in significant volatility but no clear directional movement by the close.

The dynamics of the rickshaw man suggest indecision in the market.

In some contexts, this pattern might represent a period of consolidation, suggesting the continuation of a previous trend.

In other cases, it might indicate indecision at the end of a bullish run-up, potentially signaling a market reversal.

Traders may choose to bet on a continuation or reversal based on the context, but in many instances, they may prefer to wait until a clearer chart pattern or price trend emerges.

The rickshaw man, like all long-legged doji patterns, indicates that the forces of supply and demand are nearing equilibrium.

While this pattern can represent a security’s movement over any timeframe, it is generally more significant on longer-term charts with more participants contributing to its formation.

When analysts use the rickshaw man in conjunction with other technical indicators, they are more likely to identify reliable trading signals.

For example, if the price is in an overall uptrend but has recently pulled back, a rickshaw man pattern coupled with an oversold stochastic making a bullish crossover could signal that a bottom to the pullback is near.

Once the price starts moving up, the pattern and indicator signals are confirmed.

Rickshaw Man Limitations

A rickshaw man candlestick signals indecision, but other forms of technical analysis are typically required to indicate whether this is good, bad, or insignificant.

If a trade is taken based on the rickshaw man candlestick, there is no inherent profit target, so it is up to the trader to determine where to take profit if the entry proves profitable.

The pattern occurs frequently, especially when price action is already choppy.

Therefore, traders must look for the pattern only in specific contexts that enhance the pattern’s reliability if they opt to use it.

Concluding Thoughts

The rickshaw man candlestick pattern serves as an indicator of market indecision and can be a useful tool for traders when combined with other technical analysis methods.

However, due to its frequent occurrence and lack of a clear directional signal, it should not be relied upon in isolation.

Traders are advised to use the rickshaw man in conjunction with other indicators and patterns to improve the accuracy of their trading decisions and to carefully assess the broader market context before acting on this pattern.

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Spinning Top

What Is a Spinning Top Candlestick?

A spinning top is a candlestick pattern with a short real body that’s vertically centered between long upper and lower shadows.

The candlestick pattern represents indecision about the future direction of the asset, meaning that neither buyers nor sellers could gain the upper hand.

A candlestick pattern forms when buyers push the price up during a given time period, and sellers push the price down during the same time period, but ultimately the closing price ends up very close to the open.

After a strong price advance or decline, spinning tops can signal a potential price reversal if the candle that follows confirms.

A spinning top can have a close above or below the open, but the two prices are always close together.

spinning top

What Does a Spinning Top Candlestick Tell You?

Spinning tops are a sign of indecision in the asset; the long upper and lower shadows indicate there wasn’t a meaningful change in price between the open and close.

The bulls sent the price sharply higher, and the bears sent the price sharply lower, but in the end, the price closed near where it opened.

This indecision can signal more sideways movement, especially if the spinning top occurs within an established range.

It can also signal a possible price reversal if it occurs following a price advance or decline.

Sometimes spinning tops may signal a significant trend change.

A spinning top that occurs at the top of an uptrend could be a sign that bulls are losing their control, and the trend may reverse.

Similarly, a spinning top at the bottom of a downtrend could signal that bears are losing control and bulls may take the reins.

In any case, confirmation helps clarify what the spinning top is saying.

The confirmation comes from the next candle.

If a trader believes a spinning top after an uptrend could result in a reversal to the downside, the candle that follows the spinning top should see prices drop.

If it doesn’t, the reversal is not confirmed, and the trader will need to wait for another trade signal.

If the spinning top occurs within a range, this indicates indecision is still prevalent, and the range will likely continue.

The candle that follows should confirm, meaning it stays within the established sideways channel.

Spinning tops are a common candlestick pattern, which means they work best in conjunction with other forms of technical analysis.

For example, traders may look at technical indicators, like the moving average convergence-divergence (MACD) or relative strength index (RSI), for signs of a reversal before taking a trade based on a spinning top.

Indicators or other forms of analysis, such as identifying support and resistance, may aid in making decisions based on candlestick patterns.

Limitations of Using the Spinning Top

Spinning top candlesticks are common, which means many of the patterns witnessed will be inconsequential.

Since assets often have periods of indecision, this makes sense.

Spinning tops frequently occur when the price is already moving sideways or is about to start.

As for forecasting reversals, the common nature of spinning tops also makes this problematic.

Many spinning tops won’t result in a reversal.

Confirmation is required, but even with confirmation, there is no assurance the price will continue in the new direction.

Trading around a spinning top can also pose some problems since the candle can be quite large from high to low.

If confirmation comes after a spinning top and a trade is taken, placing a stop loss above or below the high/low of the spinning top could result in a large risk, which doesn’t justify the potential reward.

Assessing the reward potential of a spinning top trade is also difficult since the candlestick pattern doesn’t provide a price target or exit plan.

Traders need to utilize other candlestick patterns, strategies, or indicators to find a profitable exit.

Concluding Thoughts

The spinning top candlestick pattern is a useful indicator of indecision and potential market reversal, but it should not be relied upon in isolation.

Given its common occurrence, traders should seek confirmation from subsequent candles and integrate additional technical analysis tools to support their trading decisions.

When used as part of a broader strategy, the spinning top can provide valuable insights into market sentiment and potential price movements, helping traders navigate both trends and ranges effectively.

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Bullish Harami Cross & Bearish Harami Cross

Bullish Harami Cross and Bearish Harami Cross: How to Read and Trade Them

Last updated: 3 July 2026 · By Spencer Li, CFTe

A harami cross is a two-candle reversal pattern: a large candle in the direction of the trend, followed by a small doji (a candle that opens and closes at nearly the same price) that sits entirely inside the body of the first candle. The bullish harami cross forms after a downtrend and warns of a possible turn up. The bearish harami cross forms after an uptrend and warns of a possible turn down. The “cross” just means the second candle is a doji rather than a small solid candle. On its own it is a warning, not a trade. The pattern works best when you wait for confirmation (price following through in the new direction) and when it lands at a level that already matters, like major support or resistance. Personally, I treat it as an alert to pay attention, not a signal to fire. Here is how to read each version, when to weight it more, and how to enter and manage it if you choose to trade it.

What is a harami cross?

“Harami” is the Japanese word for pregnant, and that is the picture: a big candle (the mother) carrying a tiny doji inside it (the baby). The doji must be completely contained within the real body (the open-to-close range) of the candle before it.

The story it tells is simple. The first candle is a strong move in the current trend, one side firmly in control. Then momentum stalls. The doji is a candle that opens and closes at almost the same price, so it is a picture of indecision. The side that was winning has stopped pushing. That hesitation is the whole signal.

A harami cross with a normal small candle is just a harami. The doji version is the stronger one, because a doji is a cleaner picture of balance than a small solid candle.

Bullish harami cross vs bearish harami cross

Same structure, mirror images. The bullish one shows up after a drop, the bearish one after a rise.

Bullish harami crossBearish harami cross
Forms afterA downtrendAn uptrend
First candleLong down candle (red/black), sellers in controlLong up candle (green/white), buyers in control
Second candleDoji, opens above the prior close, inside the bodyDoji, inside the body
What it signalsSellers losing conviction, possible turn upBuyers losing conviction, possible turn down
ConfirmationPrice rises above the open of the first candlePrice drops below the open of the first candle
Invalidated whenPrice keeps falling, no follow-throughPrice keeps rising after the doji

In both cases the doji is the same message: the dominant side just blinked.

Why confirmation matters more than the pattern

Here is the honest part. A harami cross by itself is a low-conviction signal. The doji says indecision, and indecision resolves in either direction. Plenty of them stall and then keep going the original way.

That is why most disciplined traders wait for confirmation before acting. Confirmation is simply price following through in the expected direction:

  • Bullish: price rises above the open of the first (down) candle.
  • Bearish: price drops below the open of the first (up) candle.

Sometimes price pauses for a few candles after the doji before it moves. That is fine. You are waiting for the follow-through, not for it to happen on a schedule. If it never comes, you never had a trade.

What makes a harami cross worth more weight

Not all harami crosses are equal. The pattern earns more significance when other things line up with it. This is where it stops being a random two-candle shape and starts being a real setup.

  • Location. A bullish harami cross at major support is worth far more than one in the middle of nowhere, especially with no nearby resistance overhead to cap the move. A bearish one near major resistance, same idea.
  • Momentum. Watch the RSI (Relative Strength Index, a momentum oscillator from 0 to 100). A bullish harami cross is stronger when RSI is turning up from oversold. A bearish one is stronger when RSI is rolling over from overbought.
  • Confluence. When the level, the pattern, and the momentum reading all point the same way, you have a real edge. One of the three alone is just noise.

Do note that, a harami cross floating in the middle of a range, with nothing else agreeing, is not a trade. It is a candle.

How to trade a harami cross

First, you do not have to trade it at all. Many traders use it purely as a heads-up to watch for a reversal. That is a perfectly valid use. If you are already long and a bearish harami cross appears and price starts dropping, that is your cue to take profits. If you are short and a bullish harami cross appears and price starts rising, that is your cue to cover.

If you do choose to enter, here is the structure.

Bullish harami cross (long)Bearish harami cross (short)
EntryWhen price moves above the open of the first candleWhen price drops below the open of the first candle
Stop lossBelow the doji low, or below the low of the first candleAbove the doji high, or above the high of the first candle
Aggressive optionEnter as the doji forms (less reliable)Enter as the doji forms (less reliable)

The big catch: a harami cross has no built-in profit target. The pattern tells you where a reversal might start, not where it ends. So you have to bring your own exit. A trailing stop, a Fibonacci extension or retracement level, the next major support/resistance, or a fixed risk-to-reward ratio all work. Pick one before you enter, not after.

Where the human edge comes in

A scanner will flag every harami cross on the chart for you in a second. That part is free now. What it will not do is tell you that this one sits in dead space and the one at support three days from now is the only one worth taking. It will not size the position so the wide doji-to-first-candle stop still risks the same dollar amount. It will not hold you back from firing on the doji before confirmation arrives. The pattern is the easy part. Knowing which harami cross is a setup and which is just a candle is the judgment, and it is the first of the Five Edges a machine cannot trade for you.

FAQ

Is a harami cross bullish or bearish?
It can be either. A bullish harami cross forms after a downtrend and signals a possible reversal up. A bearish harami cross forms after an uptrend and signals a possible reversal down. The direction depends on the trend it interrupts.

What is the difference between a harami and a harami cross?
Both are two-candle patterns where a small second candle sits inside the body of a large first candle. In a regular harami the second candle is a small solid candle. In a harami cross the second candle is a doji (open and close nearly equal), which is a cleaner picture of indecision and generally the stronger signal.

How do you confirm a harami cross?
Wait for follow-through. A bullish harami cross is confirmed when price rises above the open of the first candle. A bearish one is confirmed when price drops below the open of the first candle. Confirmation at a major support or resistance level, with RSI agreeing, is stronger still.

Where do you put the stop loss on a harami cross?
On a bullish (long) entry, place it below the doji low or below the low of the first candle. On a bearish (short) entry, place it above the doji high or above the high of the first candle. Then size the position down so the wider stop still risks the same amount.

Does a harami cross have a profit target?
No. The harami cross does not project a target the way some patterns do. You have to set your own exit, using a trailing stop, Fibonacci levels, the next support/resistance, or a fixed risk-to-reward ratio.

So, is the harami cross worth trading? My honest take: not as a standalone signal, but as a high-quality alert that earns its keep when it lands at a level that matters. Use it to wake up, not to fire blind.

If you want the full set of candlestick reversals mapped to the same idea, read the pillar: The Definitive Guide to Candlestick Patterns.

Want the system behind the patterns? Grab the free 15-Minute Swing Trading Starter Kit. It’s the exact routine I use to scan once a day and trade any market in 15 minutes.

About the author. Spencer Li is the founder of Synapse Trading and a Certified Financial Technician (CFTe) with 15 years of trading across stocks, forex, crypto, commodities, and bonds. His trade log is public, 404 trades, losses left in. He teaches low-risk swing trading in 15 minutes a day, one system for any market.

Education, not financial advice. Synapse Trading is not licensed by MAS to advise on investment products. Trading carries risk of loss; past performance is not indicative of future results.

Related

Definitive Guide to Candlestick Patterns (pillar) · Doji candlestick pattern · Bullish and bearish engulfing patterns · Continuation and reversal patterns

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Bearish Harami

What Is a Bearish Harami?

A bearish harami is a two-bar Japanese candlestick pattern that suggests prices may soon reverse to the downside.

The pattern consists of a long white candle followed by a small black candle.

The opening and closing prices of the second candle must be contained within the body of the first candle.

An uptrend precedes the formation of a bearish harami.

Bearish Harami Explained

The size of the second candle determines the pattern’s potency; the smaller it is, the higher the chance there is of a reversal occurring.

The opposite pattern to a bearish harami is a bullish harami, which is preceded by a downtrend and suggests prices may reverse to the upside.

The bearish harami received its name because it resembles the appearance of a pregnant woman.

“Harami” is the Japanese word for pregnant.

Traders typically combine other technical indicators with a bearish harami to increase the effectiveness of its use as a trading signal.

For example, a trader may use a 200-day moving average to ensure the market is in a long-term downtrend and take a short position when a bearish harami forms during a retracement.

Trading a Bearish Harami

Price Action: A short position could be taken when the price breaks below the second candle (harami candle) in the pattern.

This can be done by placing a stop-limit order slightly below the harami candle’s low, which is ideal for traders who don’t have time to watch the market, or by placing a market order at the time of the break.

Depending on the trader’s appetite for risk, a stop-loss order could be placed above either the high of the harami candle or above the long white candle.

Areas of support and resistance might be used to set a profit target.

 

Indicators: Traders can use technical indicators, such as the relative strength index (RSI) and the stochastic oscillator with a bearish harami to increase the chance of a successful trade.

A short position could be opened when the pattern forms and the indicator gives an overbought signal.

Because it is best to trade a bearish harami in an overall downtrend, it may be beneficial to make the indicator’s setting more sensitive so that it registers an overbought reading during a retracement in that trend.

Profits could be taken when the indicator moves back into oversold territory.

Traders who want a larger profit target could use the same indicator on a larger time frame.

For example, if the daily chart was used to take the trade, the position could be closed when the indicator gives an oversold reading on the weekly timeframe.

Concluding Thoughts

The bearish harami is a valuable pattern for traders looking to identify potential reversals in an uptrend.

While the pattern alone can signal a bearish reversal, its effectiveness is enhanced when used in conjunction with other technical indicators like the RSI or stochastic oscillator.

As with all trading strategies, proper risk management is crucial, and traders should be mindful of using stop-loss orders to mitigate potential losses.

Incorporating the bearish harami into a broader trading strategy that includes trend analysis and confirmation signals can lead to more informed trading decisions and potentially better outcomes.

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