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Diamondtop

DOGE Diamond ReversalHope you took advantage of Doge which I made a post back on January 9th. I labeled this neutral as it will likely go up resulting in a bear trap. All of you out there quoting 10-14 cents be careful. I see this coming down to the 4.4 cent level, which would be a great place to step in for a good sized bounce. It's been a fun ride but all good things come to an end. Best to look at other opportunities for now. Remember this is only my formed analysis outlook. This is not an endorsement or recommendation to buy or sell.
BINANCE:DOGEUSD
by CryptoDude79
3
BTC Critical PatternsLooking at BTC on 1H chart, I noticed a diamond top pattern, which is not perfect but yet it's there. I drew it with the yellow trendlines . However, the purple trendline in the bottom of the formation is the neckline of a possible H&S pattern, which is also visible on 4H chart, but this is valid if the left shoulder is formed in the near future. Thus, if this yellow trendline which is stopping BTC right now is not broken upside, we might see a drop in the BTC price. Just adding that the current trendline is also the bottom of a wedge from my previous analysis. Wish you luck!
BITFINEX:BTCUSD
by mmladenoff
1
Shine bright like a diamond in the sky! oh oh oh oh Shine bright like a diamond Shine bright like a diamond Find light in the beautiful sea(all time high right now), I choose to be happy (full in euphoria ) You and I, you and I, we're like diamonds in the sky oh oh oh oh oh You're a shooting star I see, a vision of ecstasy!!!!!!!! When you hold me, I'm alive oh oh oh oh We're like diamonds in the skyyyyyyyy...... So many patterns taking place right now in multiple time frames in the index but this one seems the most scary!!! Be careful and wait for strong trend confirmation... Rihana FTW!!!!!!
SP:SPX
by Philoslother
TSLA 30 Min UpdateNASDAQ:TSLA TSLA so far throughout the day has been moving in a range with bearish sentiment. My only explanation for this is that there has been a lot of sector rotation going on this week so far from tech to other sectors such as energy, industrials, and financials, . Just take a look at $DIA, $XLF, $XLE, and $XLI. In addition to this rotation, a diamond top pattern was formed earlier in the day on the 30 min chart which was met with a rapid and strong selling pressure. This is to be expected considering a diamond top pattern is a bearish signal. However, a double bottom Pattern formed and we can potentially see an inverse head and shoulders pattern form by tomorrow. I will personally be going long if I see TSLA confirm this pattern and break out over the 1413 level Sentiment: Neutral to Bullish Reasons: 1. Temporary Sector Rotation 2. Double Bottom Formation 3. Potential Inverse Head and Shoulders Pattern
NASDAQ:TSLA
by DannyNoburu
16
Diamond Reversal Chart PatternDiamonds Chart Patterns Explained The diamond chart pattern is a very rare and exceptional form of chart formation which looks same like the head and shoulder or an inverted head and shoulder pattern. It is a reversal pattern which appears in a V shape . The diamond patterns will not frequently occur in the market bottoms and it usually takes place during the major top. As these diamonds chart pattern executes as a variant of head and shoulders chart patterns, the traders have to withstand their desire for differentiating the top that resembles a diamond formation. The basic reason for avoiding this pattern is that, the diamonds chart pattern will evoke a break in the trend very sooner when compared to the head and shoulders chart formation. Basically there are two types of diamond patterns: the diamond bottoms which are formed in bearish trends and the diamond tops which are formed in bullish trends. In both cases the pattern is formed by two juxtaposed symmetrical triangles. Diamond Tops -This formation indicates the shortness of buyers and therefore trader’s indecisiveness in the market. Also, this pattern reflects a growing volatility which will be gradually reduced towards the end of the diamond. -The price oscillations are of greater amplitude and then begin to decrease which indicates a possible trend reversal. In this case the buyers start losing momentum. Diamond Bottoms -This formation indicates the shortness of sellers (the weakening of the sell force) and therefore trader’s indecisiveness in the market. Also, this pattern reflects a growing volatility which will be gradually reduced towards the end of the diamond. -The price oscillations are of greater amplitude and then begin to decrease which indicates a possible trend reversal. In this case the sellers start losing momentum. Diamond pattern main features The early break in the signal will result in premature positioning. For evaluating the breakthrough prospective of this diamonds chart pattern, you need to calculate the distance within the high and lowest diamond point chart formation and add this distance to the breakthrough point. Usually, the appearances of a breakthrough in the diamond pattern is followed by a strong market movement in the direction of the breakout.Diamonds chart patterns is not often discussed by the traders, because this pattern is not frequently used in trading. But when this pattern appears the trader must be prepared for a possible change in the market trend. Traders who want to know how to use this pattern should be aware of the following tips before getting started. The diamond patterns occur infrequently. Statistics indicate that there are 3 times more diamond tops compared to diamond bottoms. Sometimes is possible to see and inverted head and shoulders within the diamond bottoms or a normal head and shoulders within the diamond tops. When the diamond is beginning to form, the formation resembles a widening of a symmetrical triangle pattern . However, the difference is that the diamond is a reversal pattern and the symmetrical triangle a continuation pattern. Some traders don’t recommend to implement the diamonds chart pattern, as it is quite unusual and not often examined to give results in trading. As in all chart formations, the trading volume at the time of the breakage of the figure is essential to determine the reliability of the diamond pattern. KEY TAKEAWAYS Traders use price patterns such as pennants , flags, and double bottoms and tops to forecast profitable trading opportunities and explain market dynamics. One useful price pattern in the currency markets is the bearish diamond top formation. The diamond top signals impending shortfalls and retracements with accuracy and ease. A diamond top can be located by isolating a head-and-shoulders formation and applying trendlines to the peaks and troughs. Utilizing price oscillators with the price pattern can increase the accuracy of a trade by gauging price action momentum. Conclusion The Diamond pattern is a rare, but reliable chart pattern. It looks like a rhombus on the chart. However, it could easily be mistaken for a head and shoulders pattern. The diamond pattern has a reversal characteristic: Bullish Diamond Pattern (Diamond Bottom) Bearish Diamond Pattern (Diamond Top) In stock trading, the bearish diamonds on the top of bullish trends are more common. The diamond bottoms are rare. When you trade a bearish diamond chart pattern, you should comply with the following rules: Confirm the diamond pattern by discovering relatively big trading volumes. Make sure the pattern is more horizontal, rather than vertical. If the shape is more vertical than horizontal, then you are probably looking at a head and shoulders chart pattern. Sell when the price breaks the lower right side of the diamond. Place a stop loss order above the last top inside the diamond shape on the chart. Stay in the trade for a minimum bearish move equal to the size of the diamond pattern. You can extend profits by simply adding a volume weighted moving average . When the price breaks the VWMA upwards after completing the minimum target, you should exit the trade. If the stock is known to be more volatile, use a bigger VWMA . Thanks for your like and support...
BITSTAMP:BTCUSDEducation
by TaherJalili
5
Boeing Weekly Diamond Pattern BA SHowing on the weekly defined diamond pattern, I believe most likely a diamond top. See link for example. static-news.moneycontrol.com General rule for trading diamonds are the first target on breakout is equal to the size of the diamond. My first target for BA breakout down from this diamond would be around 247 area, but could go lower for uptrend support line touch. Here's the issues with trading this. This pattern could theoretically extend out for a while yet to come. So, to minimize risk the safe play is to wait for break below trend line/bottom diamond line to short. There is another, riskier play. Of course with more risk also generally comes more reward, so balance that according to your trading style. Option 2 would be to short now, since the last weekly candle touched then pulled back from a short term resistance trend line. If it were to be rejected and head down to bottom of diamond, that's a handsome reward without even breaking the formation. Nevermind how much dough it would be if it actually went ahead and broke out. If you decide to play this choice, be sure to set a stop loss just above the short term resistance trend line, so around 370. This represents a 5:1 ratio in favor of reward just to bottom of diamond. Total RRR to first target from close is around 15:1. Hit a nice gain last week off that Monday premarket drop, but will likely wait for breakout of formation to short here. Happy hunting and GLTA!!
NYSE:BA
by UnknownUnicorn1314136
1