Trader's Logbook

CMT has been going uptrend for a few days now with approximately 30% total gain. Today’s candlestick warns us to be cautious because of the Shooting Star. A Bearish Shooting Star Pattern suggests that prices may be approaching to a top. The shooting star is a small real body characterized by a long upper shadow, which gaps away from the prior real body.

A confirmation on the third day is required to be sure that the uptrend has reversed. The confirmation may be in the form of a red candlestick, a large gap down or a lower close on the next trading day.

Caveat!