Trader's Logbook

A good reversal indicator appears on CMT today. The overall direction of this stock is bearish, characterized by a downtrend. We have seen today a selling pressure but then it close in green and close at today’s high as depicted by the long shadow. This candlestick looks like a Hammer (or could be a dragonfly doji). Price rebound above 23.6% Fibonacci Retracement level after it went as low as 2.3 a share.

After days of going down as reflected by red candlesticks, is it time to reverse? Ideally we want to have a gap up tomorrow or a large green candlestick to confirm reversal.

Caveat!