đź’Ž Diamond Chart Pattern
All financial markets, including the stock market, forex market, cryptocurrency market, and futures markets, feature diamond reversal patterns.
Compared to many other traditional chart designs, the diamond pattern is less frequent.
However, it's critical that you understand and recognize the pattern since, when it happens, it can present a great trading opportunity.
In general, a diamond top pattern that follows a rise in market prices offers a greater likelihood of a trade than a diamond bottom pattern that follows a decrease in market prices.
🟢 Bullish Scenario:
After a decline, a bullish diamond pattern known as a diamond bottom appears.
Typically, a diamond bottom is formed by a significant price decline followed by a consolidation phase that creates up and down swing points.
The appearance in this situation will resemble an upside-down head and shoulders design.
The structure's peaks and troughs will be connected in the same manner.
đź”´ Bearish Scenario:
The diamond top typically occurs at the peak of significant uptrends.
It efficiently and accurately predicts imminent shortfalls and retracements.
By focusing on a head-and-shoulders structure and adding trendlines to the highs and lows, a diamond top can be found.
👤 @AlgoBuddy
đź“… Daily Ideas about market update, psychology & indicators
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Compared to many other traditional chart designs, the diamond pattern is less frequent.
However, it's critical that you understand and recognize the pattern since, when it happens, it can present a great trading opportunity.
In general, a diamond top pattern that follows a rise in market prices offers a greater likelihood of a trade than a diamond bottom pattern that follows a decrease in market prices.
🟢 Bullish Scenario:
After a decline, a bullish diamond pattern known as a diamond bottom appears.
Typically, a diamond bottom is formed by a significant price decline followed by a consolidation phase that creates up and down swing points.
The appearance in this situation will resemble an upside-down head and shoulders design.
The structure's peaks and troughs will be connected in the same manner.
đź”´ Bearish Scenario:
The diamond top typically occurs at the peak of significant uptrends.
It efficiently and accurately predicts imminent shortfalls and retracements.
By focusing on a head-and-shoulders structure and adding trendlines to the highs and lows, a diamond top can be found.
👤 @AlgoBuddy
đź“… Daily Ideas about market update, psychology & indicators
❤️ If you appreciate our work , Please like, comment and follow ❤️
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