Reversals are when a move up in price(candle 1), is followed by a / candle(2) followed by a move down on candle 3 that retraces at least 50% of the first candle in the three candle pattern. This pattern shows traders initially are on candle 1 by pushing price higher, then become indecisive on candle 2 which creates upper and lower wicks of equal length with a monthly close near the monthly open which creates a small candle body. On candle 3 they take price decisively lower and retrace half of the pattern move.
While this candle pattern setup is , in needs confirmation on the next candle via a price move below the low made on candle 3. In CGC’s case, a monthly close in March below $18.78 would be pattern confirmation and likely mean more downside for price going forward.
The and indicators below the chart are also showing negative price trend and momentum. The is in a negative cross and declining with a fresh line(green) move below the 0 level which indicates a negative trend for price. The is also in a negative cross and declining with the line colored purple and declining below its signal line(white). The is also below the 50 level with a purple shaded background which indicate a negative momentum trend behind price.