Diamond Pattern

Diamond Bottom:

Diamond pattern forms after a downward price trend. Breakout is upward. Short-term bullish reversal

Facts: Throwbacks hurt performance but breakout day gaps help. Tall or wide patterns perform better than short or narrow ones.

Volume is typically high during the three critical parts of the formation: formation start, Wedge and upward breakout.

Percentage Success: 64%

Percentage Failure : 11%

Percentage Movement Expected: 27%

Tips for Entry and Exit:

• Do not premeditate before confirmation of handle part.
• Do not exit the position with less than 15% profit.
• Use it along with moving average and Trend line for better accuracy

Diamond Top:

Diamond pattern forms after an upward price trend. Breakout is upward. Short-term bullish reversal

Facts: Throwbacks hurt performance but breakout day gaps help. Tall or wide patterns perform better than short or narrow ones.

Pullbacks hurt performance but breakout day gaps help. Tall and narrow patterns perform better than other combinations. Patterns with light breakout volume perform better

Tips for Entry and Exit:

• Do not premeditate before confirmation of handle part.
• Do not exit the position with less than 15% profit.
• Use it along with moving average and Trend line for better accuracy