This week has seen the formation of Gravestone Doji candles on World Index weekly charts. These tend to be an indicator of a change in direction from the bear market rally we have had in recent times, so we may see markets slide this coming week. Bullish market sentiment pushed the indices higher at the start of the week before running out of steam on Thursday. The bears then assumed control and the markets slipped down to where they opened the week.

These candles are the opposite to one of my favourite bullish candle patterns the Kangaroo Tail which has a long tail below a short body and little or no upper wick on the candle. Kangaroo Tails are excellent indicators of a bullish reversal in a market retracement.

This post is intended for educational purposes only and should not be taken as investment advice.