Final answer:
The difference between the Gravestone Doji and Dragonfly Doji is in the position of the long tail; the Gravestone has a long upper tail while the Dragonfly has a long lower tail. The Gravestone is generally bearish and the Dragonfly bullish, reflecting where the opening and closing prices are in relation to the period's high or low.
Step-by-step explanation:
The Gravestone Doji and the Dragonfly Doji are both types of candlestick patterns used in technical analysis to predict potential market price movements. The primary difference between them is the location of the long shadow in relation to the small body of the candlestick. The Gravestone Doji is characterized by a long upper tail with little to no lower tail, indicating that the opening and closing prices are at the low of the period, whereas the Dragonfly Doji has a long lower tail with little to no upper tail, representing that the opening and closing prices are at the high of the period.
Option A correctly describes this difference: A) Gravestone Doji has a long upper tail, and Dragonfly Doji has a long lower tail. As for what each pattern typically suggests, the Gravestone Doji is often considered bearish as it reflects a scenario where buyers pushed the price higher but couldn't sustain the price levels by the close of the period. In contrast, the Dragonfly Doji is viewed as more bullish since it shows that sellers managed to drive the price down during the session, but buyers came in strong and pushed it back up.