What Is The Diamond Chart Pattern & How To Trade With It

Diamond Chart Pattern

The Diamond pattern is a reversal pattern that appears at major tops and bottoms. It rarely surfaces on the chart and has a V-shaped neckline. What is the Diamond chart pattern? The Diamond pattern, with its unique appearance, identifies a potential reversal. It comes in two types; Diamond bottom and top. a. Diamond Top The Diamond top occurs at the major tops. It presents that price rallies to a new high then drops to a support level, goes up again, and then declines back to a support level to form a new low. b. Diamond Bottom The Diamond bottom forms …READ MORE