Diamond Top I have just started studying this pattern as there have been quite a few recently..enough to make me stop and study it. So far I have found they are almost always bearish and often end up forming a Head and Shoulders pattern. But then again, there have been a lot of ugly tops recently. Some tops are just "ugly" and can not be classified )o:
There is a gap up below price..price is hanging there right now. A gap up can offer strong support at the top of the gap. If it holds, TTD may bounce off and go up again. If not......
No recommendation
I measured the fall of a diamond top, IF it happens, by moving the line drawn from the top to the bottom structure trendline protruding downward. If this is indeed a head and shoulders pattern, you can draw a line from the head to the neckline, then project it downward to get a ball park estimate of the possible move down. A H&S pattern would take the target down to 450ish and possibly lower depending on market conditions.
As you can tell, lol, I do not particularly like the label head and shoulders too much because we have been in a bull market ever since I started trading (O:
