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The Gravestone Doji is the _______ version of the ________________, it is formed when ____________________

A) Bullish, Dragonfly Doji, open and close prices are nearly the same
B) Bearish, Dragonfly Doji, open and close prices are nearly the same
C) Neutral, Dragonfly Doji, the high and low prices are nearly the same
D) Inverted, Dragonfly Doji, the open and close prices are different

User Laban
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Final answer:

The Gravestone Doji is a bearish candlestick pattern that resembles an inverted Dragonfly Doji, indicating potential trend reversals after the price is pushed back down to the open following an uptrend.

Step-by-step explanation:

The Gravestone Doji is the bearish version of the Dragonfly Doji. It is formed when the open and close prices are nearly the same, which appears during an uptrend and suggests a potential reversal. Unlike the Dragonfly Doji, where the long tail is below the body indicating buying pressure, the Gravestone Doji has a long upper shadow with little to no lower shadow, representing selling pressure that pushed the price back down to the open after it went up during the day. This candlestick pattern is used by traders to spot potential trend reversals in the market.

User Ali Faris
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