How does a diamond pattern get so complex?
on the left hand side we see a series of days UP, 5 waves up and an ABC down, day after day, this is how the market moves up.
We had 5 waves up, from the diamond bottom, (red 5). to a 4th wave down, that turned into 5 waves down, and on the ABC up, it reversed again and fell, now reversing off the wave 3 down, close to the lower edge of the diamond.
This all creates the extremely complex diamond top formation.
We had 5 waves up, from the diamond bottom, (red 5). to a 4th wave down, that turned into 5 waves down, and on the ABC up, it reversed again and fell, now reversing off the wave 3 down, close to the lower edge of the diamond.
This all creates the extremely complex diamond top formation.
Note
The market is going up at the time of this post, but a diamond top formation is long term and bearish. in 2022 the NQ went down 7000 points from one.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.