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What does a Gravestone Doji pattern indicate?

a) A potential trend reversal
b) Strong bullish momentum
c) Continuation of the current trend
d) Bullish reversal

1 Answer

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Final answer:

A Gravestone Doji pattern indicates a potential trend reversal in the stock market.

Step-by-step explanation:

A Gravestone Doji pattern is a candlestick pattern that indicates a potential trend reversal in the stock market.

It is formed when the open, high, and close prices are all equal or very close to each other, but the low price is significantly lower, forming a long lower shadow.

This pattern suggests that the market initially tried to push prices higher, but encountered strong selling pressure, resulting in a potential reversal in the current trend.