Cara Therapeutics, Inc. (NASDAQ: CARA)
Today we are going to revisit Cara Therapeutics Inc. We had previously discussed how you can look for trading tips using the Keltner channels in our May 2018 edition. Click here to revisit <insert link to May 2018 mag>. If you go to Cara’s website you will see on that they are “Working to fundamentally change the way pain and pruritus are managed.” Today we will discuss how you as an investor can take a look at hints that the chart sometimes gives us to help avoid pain. Note that what we will present today is not specific to Cara by any means and can be applied to all of your investments when warranted. We know the cannabis sector can be rather volatile so today let's take a look at another signal that (at least for the short term) some bearish pressure is on tap.
Today we will talk about crows on the chart. But first a question.
Question: Why is a group of crows called a "murder"?
Answer: Because there is probable "caws".
Now that you are in the mood, let's talk about the candle pattern known as three black crows. This pattern is known to be bearish and you can use this to help you spot potential reversals when combined with other indicators. The pattern consists of 3 candles. The first day is a long red candle. On the second day, bulls attempt to open higher than the close of the first day but fail return bullish pressure and end up closing lower than the first day. The third day is essentially a repeat of the second days' action applied to the second candle. As a result, you have a string of 3 days in a row where the bulls tried but lost to the bears. Note the examples on the CARA chart here. Perhaps the next time you see 3 black crows in a row you can consider taking profit or make sure your stop loss is reevaluated.
Note: this is an American listed company for those of you looking to diversify
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