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Diamondpattern

💎 Diamond Chart PatternAll 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. 🔴 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 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work , Please like, comment and follow ❤️
Education
by QuantVue
VIX in DIAMOND BUTTOMS!!!!!On the VIX Volatility index , I have observed a diamond pattern, which suggests that the current instability in market sentiment is likely to lead to a rise in market prices. Based on this, I decided to open a long position at the entry price of USD 21.21. I have set the Stop Loss level at USD 19.53 so that if market prices turn worse than expected, I can close the position with minimal loss. And I set the Take Profit at USD 24.26 so that if the market prices reach a certain level, I can automatically close the position at the best possible price. It is important to note that this is only my own observation and does not constitute investment advice. Everyone should make decisions in the financial markets at their own risk.
VLong
by Fyber
SPX & NQ - Still a mixed bagJust a quick update. SPX closed the year 2022 with a Diamond Pattern. This pattern is potentially a reversal pattern (potentially bearish if it occurs at Market Tops, and potentially bullish if it occurs at Market Bottoms). Where it is occuring now, it could be a bottoming process for the SPX. However, Nasdaq is still the weakest link right now and still looking bearish. A short term bounce could happen for NQ as a bullish divergence is seen but in the larger picture, any bounce right now could still be a "Bull Trap". Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NASDAQ:NDX
by Juliac
APPL APPLE BEARISH DIAMOND CONT.It appears to me that a bearish diamond pattern is coming to an end - based on the qqq's direction and the overall sentiment on the direction of the entire market I would wager that its going to eventually (soon) break the lower purple line (140.15) which represents a heavy volume/price area. As you can see that level has been an area of strong adherance throughout the entire diamon thus far. It is possible that the pattern will make one more small push to the upside towards the $145 level however that pop should be short lived. Overall PT 1 is $135.64 PT 2 - 131.04 Both the 1/20/23 $140 PUT strike as well as the 2/17/23 $140 put strike have heavy open interest and look like a safe bet with plenty of time. However I do think the trade can be exited for profits well before those expirations.
NASDAQ:AAPLShort
by arich1282
3
Bearish Diamond Reversal for SPX if confirmedThe SPY is forming a bearish diamond reversal pattern just below critical trend resistance from the larger trend. If we create a bear-spring pattern at this larger trend resistance marked with the dotted green line, or if we simply reject down from it, then we can assume a high likelihood of breaking the diamond to the downside. Of course, naturally, if we form support at or above the larger trend resistance, then we can assume the price will not complete the bearish diamond reversal pattern and will do something else entirely.
CME_MINI:ES1!Short
by lysergik
Chart Pattern Review | Diamond Top / Bottom ReversalDIAMOND TOP / BOTTOM: > A trend reversal pattern indicating the end of up or downward trend - slightly off head & shoulders pattern > Price increased and declined sharply with significant volume forming a diamond shape > A mix of expanding and contracting triangle or wedge, often confused with a more popular head & shoulders > Timing could range from days to months Key characteristics: > The price should trending downward then forming a broadening pattern. > The price pattern increased and decreased sharply before squeezed for rebound > Timing ranging from days-weeks-or months - a strong long-term reversal pattern > Most trends will begin with a breakout gap and be followed by several runaway gaps. Trading Tips: > Price range determines the target reversal > TP1 @ the size of the diamond extending the breakout or breakdown distance. > TP2 can be targeted between 1.0 / 1.618 fibonanci retracement. > TP3 @ key moving average support / resistance within extended range. > Putting the chart together with a price oscillator like VWAP / CVD for a better early breakout or breakdown catch. > Price oscillator can monitor the overall likelihood of a high probability trade and confirming strength/momentum as well as spotting false breakout/breakdown trades. Always trade with affordable risk and respect your stoploss, nothing 100% Good Luck!
SET:ADVANCEducation
by dukeposh
RLC potential big moveRLC is an Ethereum token (web3 crypto) of IExec, specialized in cloud computing. In the roadmap of the company, they intend to announce "RLC Learn & Earn" program in 2023. Will it be a new hype after "Play & Earn" with AXS, "Run & Earn" with (STEPN) GMT? Let wait until then... But at the moment, RLC seems to make a big move the next days. RLC's prices have been consolidating in a diamond pattern for almost 4 months. A breakout is expected to be very soon. RSI is also at the breaking point. An upside rally would be favored (indeed the pattern looks like a diamond bottom one), but let's play safe and wait until confirmed breakout to enter. * Tommorow, markets would have high volatility with the PCE report on inflation in the US.
by evasivesteering
ETH - diamond top or the beginning of accumulation phase ?Hello, Looking at the ETH post merge can note few observations: 1. We are most probably in a Diamond Top reversal pattern on the 1D chart which is already in play ---> Target: The previous range high right below $1,300. 2. The current price action on the 1D chart looks A LOT similar to the one we had back in the period February-May, 2022. 3. The ETH/USD 1W chart suggest a Wyckoff Distribution #2 is still in play with the price being in Phase D currently. So, we are looking at the following grim scenario 4. But what if we are already in the Accumulation phase ? (bullish case) Well then we are to see something like this Cheers,
by FutureBlockchain
3