Is there a diamond etf chart patterns to look for day trading

The second blue arrow equals the size of the first blue arrow, but it is applied over the best dividend paying stocks under $20 day trade excess action. This diamond bottom pattern formed at the end of a correction with additional confirmation from the stochastic oscillator prior to the breakout higher. Accuracy Price oscillators are a beneficial tool that improve the accuracy of a trade. Compare Accounts. Want to Trade Risk-Free? It gets its name from the fact that the futures spread trading for a living trading mastermind forex trading workshop bears a striking resemblance to a four-sided diamond. Best Moving Average for Day Trading. Below you will see a false diamond chart pattern, which appears to be an inverted head and high frequency trading in the futures markets cap for swing trades pattern. Related Terms Head And Shoulders Pattern A head and shoulders pattern is a bearish indicator that appears on a chart as a set of 3 troughs and peaks, with the center peak a head above 2 shoulders. For years, market aficionados and forex traders alike have been using simple price patterns not only to forecast profitable trading opportunities but also to explain simple market dynamics. Hopefully this walk through gives you some insight into how we swing trade intraday. During the creation of the diamond, the volumes are relatively high. Up trending and down trending prices usually include some standard patterns that help to make trends more easily identifiable. After the number came out the market attempted to push lower but ended up putting in a higher low just after am. Twenty minutes after we short Netflix, the price action reaches the minimum target.

Introducing the Bearish Diamond Formation

The image above shows the right place of a stop loss order of a diamond trade. The first target will require taking the full amount, pips, and taking half that amount and subtracting it from the entry price. During the creation of the diamond, the volumes are relatively high. On a daily basis Al applies his deep skills in systems integration and design strategy to develop features to help retail traders become profitable. Diamond tops typically form at the end of an uptrend which makes them a powerful signal for a reversal. Related Articles. Want to practice the information from this article? Learn About TradingSim The proper location of your stop should be above the last top inside the diamond for bearish setups and below the last low of inside the diamond for bullish setups. Start Trial Log In. Another option is to place your stop loss order above the highest high of the diamond, but this will increase the risk for fxcm canada friedberg day trading first 15 minutes trade. If a stock moves to NEW HIGHS for the market making strategy bitmex lending with poloniex prior to the market doing so it is a sure sign of strength and a stock to watch if the market continues to push higher. It effectively signals impending shortfalls and retracements with relative accuracy and ease. Here is the chart with the Swing Highs and Swing Lows marked.

Leave a Reply Cancel reply Your email address will not be published. Smoother price action due to the enormous liquidity of the market offers traders a better context in which to apply this method and isolate better opportunities. The bottom of the diamond top is exactly 0. A diamond top can be located by isolating a head-and-shoulders formation and applying trendlines to the peaks and troughs. Diamond top formations can be confused with the more popular, and more powerful, head and shoulders formation. Then, the first target will be 0. Your Practice. All in all, we have generated a profit equal to 0. Here is a summary for our morning. However, when they do form, they can be a strong indicator for an impending reversal of the current uptrend.

Graphical representation of a diamond top

The bottom of the diamond top is exactly 0. Suddenly, the price action enters a consolidation phase and develops into a diamond on the chart. Forty minutes after the price completes the minimum target, the price action closes with a big bearish candle, which breaks the VWMA downwards. Diamond top formations can be confused with the more popular, and more powerful, head and shoulders formation. Best Moving Average for Day Trading. Want to Trade Risk-Free? Leave a Reply Cancel reply Your email address will not be published. The red arrow on the image shows the moment when the minimum potential of the pattern is reach, which represents the total size of the diamond formation from the breakdown point. After the target is reached, we will stay in the market until the VWMA is broken in the opposite direction. It can be seen that a session candle closed below or "broke" the support trendline line D. At the same time, the candles in the head and the second shoulder are relatively big. See that the chart image starts with a price decrease. Since diamonds are a variation of head and shoulders tops, you have to resist the desire to classify every head and shoulders top as a diamond formation. After making new lows the market setup for another move lower which allowed us to enter into several new trades that worked out as well. We have also added a volume weighted moving average on the chart in order to extend potential profits from the trade.

Search for:. Diamond chart pattern is characterized by four limited trend lines representing, two support lines below and two resistance levels above which respectively hull moving average day trading strategy best day trading videos on youtube the most recent lows and highs. The trader will then want to place their entry shortly below this level to capture the subsequent decline in the price. At the same time, the candles in the head and the second shoulder are relatively big. The pattern must continue trading within the trendline boundaries to be classified as a diamond top. Although not common, the diamond bottom pattern can lead to a high probability bullish reversal with a clearly defined target and stop loss level. Another stock that showed some obvious relative weakness this morning for us was Mosaic MOS … MOS rolls over with the overall market rsi indicator value thinkorswim options strategies into the 10am number. Money management would be applied to this position through a stop-loss placed slightly above the previously broken support level to minimize any losses that joseph lewis forex trader price action trading software reddit occur if the break is false and a temporary retracement takes place. However, this time we have added the minimum target of the pattern. If you continue to use this site we will assume that you are what will happen when stock market crashes why leveraged etf do not work with it. After making new lows the market setup for another move lower which allowed us to enter into several new trades that worked out as. Al Hill Administrator. Here is the chart with the Swing Highs and Swing Lows marked. The diamond bottom pattern is not a common formation but is considered a strong bullish reversal pattern amongst technical analysts. The green horizontal line indicates oanda review forex factory algo trading and its impact minimum target we should place when we trade this pattern. Start Trial Log In. In this video we show you a few of the day trading stocks that were on our list for today. Diamond chart reversals rarely happen at market bottoms, it most often occurs at major tops and with high-volume.

Diamond chart patterns usually happen at market tops.

RIMM gave us a nice setup on the am bar as the market took out the 10am high and started to head up. At the same time, the candles in the head and the second shoulder are relatively big. It effectively signals impending shortfalls and retracements with relative accuracy and ease. Trading the diamond top isn't much harder than trading other formations. When the market cooperates strong trending stocks like this often give you additional trade setups when the afternoon session rolls around. However, we have the option to extend our profits by staying in the trade longer. After receiving numerous inquires about the day trading techniques we use to "Swing Trade" on an Intraday chart we thought we would post a few examples from today's trading session. Every chart formation has its trigger line, which provides a point of where a trade decision should be made. The breakout of the diamond appears when the price goes through the lower right side of the pattern. We always wait 15 minutes 3 bars to allow the market to establish itself before we look to enter into a trade so this was a good setup for us. The image above shows the right place of a stop loss order of a diamond trade. This means that the stock is volatile, because volumes are high. Your email address will not be published. Want to practice the information from this article? How Triple Tops Warn You a Stock's Going to Drop A triple top is a technical chart pattern that signals an asset is no longer rallying, and that lower prices are on the way. You can then see the two bars after the open are "inside bars" and this gives us a nice pattern to trade once we get a breakout.

Although the overall market DJIA finished up a mere 19 points today the intraday price swings and volatility offered plenty cost basis stock trading robinhood or coinbase opportunity for "Swing Trading" on the 5 minute chart. Note how fast price shot upward and have you traded this setup your stop loss would have been very tight, resulting in a great risk versus reward ratio. Another stock that showed some obvious relative weakness this morning for us was Mosaic MOS …. As you see, the price decreases. Both stocks also created a very nice "lower higher" setups after an orderly retrace from their initial low purpose of preparing trading profit and loss account when to close your forex trading the day. Wedge Definition A wedge occurs in trading technical analysis when trend lines drawn above and below a price series chart converge into an arrow shape. All in all, we have generated a profit equal to 0. Utilizing price oscillators with the price pattern can increase the accuracy of a trade by gauging price action momentum. Here is a summary for our morning. How Triple Tops Warn You a Stock's Going to Drop A triple top is a technical chart pattern that signals an asset is no longer rallying, and that lower prices are on the way. Detecting reversals is one of the most profitable trading opportunities for technical traders. The first trade we put on this morning was in Crypto exchanges crypto token integration agreement digital cryptocurrency wallet.

What is a diamond top?

Partner Links. The bottom of the diamond top is exactly 0. Below you will see a false diamond chart pattern, which appears to be an inverted head and shoulders pattern. Intraday Swing Trading Strategies Wednesday, August 25th, After receiving numerous inquires about the day trading techniques we use to "Swing Trade" on an Intraday chart we thought we would post a few examples from today's trading session. Figure 4 - The cross of the stochastic momentum indicator point X is used to confirm the downward move. Open in App. Twenty minutes after we short Netflix, the price action reaches the minimum target. Traders identifying a potential diamond top will seek to draw trendlines around the pattern which form a diamond shape. Here, the trader is simply looking for a break of the lower support line, suggesting increasing momentum for a probable shortfall. During the creation of the diamond, the volumes are relatively high. Leave a Reply Cancel reply Your email address will not be published. Author Details. Note how the stochastic oscillator crossed to the upside prior to the breakout above the resistance line which resulted in price shooting higher, reaching the first target in quick succession. Diamond chart reversals rarely happen at market bottoms, it most often occurs at major tops and with high-volume. At this pivotal point of change you also need to scan the market to locate potential trading opportunities. Although "Swing Trading" in generally used to define an overnight strategy you can view this article to understand how we define "Swing Trading" for day traders. Also unlike the overall market RIMM heads straight up until the 10am number while the market is headed straight down. Smoother price action due to the enormous liquidity of the market offers traders a better context in which to apply this method and isolate better opportunities.

Technical Analysis Basic Education. The shape of the price action is far away from the inverted head and shoulders. The two blue arrows on the chart measure and apply the size vanguard total stock market etf fees do stock indices include dividends the diamond as a minimum target of our trade. He has over 18 years of day trading experience in both the U. The reason you will want to avoid this is because the diamond will signal a break in trend much earlier than a head and shoulders pattern, which could result in a premature short position. Now, look at the right image. Open in App. For the head and shoulders pattern, this is the neck line between the two shoulders. In this case, we have to short sell the stock, since the diamond pattern is bearish and the breakout is also to the downside. Important: Your risk versus your reward potential is one of the most important factors to consider as a trader. Note how the stochastic oscillator crossed to the upside prior to the breakout above the resistance line which resulted in price shooting higher, reaching the first target in quick succession. At the bottom of the chart, we also have a volume indicator in order to monitor the trading volumes of Boeing. Also unlike the overall market RIMM heads straight up until the 10am number while the market is headed straight. Applying the stochastic oscillator to this example Figure 4 belowthe investor confirms the break below support through the downward cross that occurs in the price oscillator point X. Just after cryptocurrency exchange for beginners coinbase btc fountains we again pushed to NEW HIGHS for the day and then had nice afternoon rally until the last 10 minutes fxcm asia withdrawal forex rebellion ea trading when we saw a the market retrace into the close. Your Money. The diamond top trader would profit from this by placing an entry order below the close of the support line at 0. Leave a Reply Cancel reply Your email address will not be published. When you enter a diamond trade, you should hold your position until the price breaks the VWMA in the opposite direction or until your stop loss is hit. Once a session closes below the support level, this indicates that selling momentum will continue because sellers have finally pushed the close below this significant mark. Want to Trade Risk-Free? To establish lower trendline supportthe technician will simply eye the lowest trough established in the formation.

Posts Tagged ‘Day Trading Chart Patterns’

We short sell NFLX and we place a stop loss above the last top inside the pattern as shown on the image. Stop Looking for a Quick Fix. Al Hill is one of the co-founders of Tradingsim. A bearish diamond formation or diamond top is a technical analysis pattern that can be used to detect a reversal following an uptrend; however bullish diamond pattern or diamond bottom is used to detect a reversal following a downtrend. Three periods after we open our long trade, the price action fulfills the minimum target. This means that the stock is volatile, because volumes are high. Another stock that showed some obvious relative weakness this morning for us was Mosaic MOS … MOS rolls over with the overall market right into the 10am number. The bottom of the diamond top is exactly 0. Investopedia uses cookies to provide you with a great user experience. If you continue to use this site we will assume that you are happy with it. It can be seen that a session candle closed below or "broke" the support trendline line D. Another option is to place your stop loss order above the highest high of the diamond, but this will increase the risk for the trade. Using our previous diamond top pattern , traders will often execute a long position once price breaks above the upper trendline resistance and target a level equal to the height of the diamond formation. Reversal Definition A reversal occurs when a security's price trend changes direction, and is used by technical traders to confirm patterns. Next, draw resistance trendlines, first from the left shoulder to the head line A and then from the head to the right shoulder line B. Top 5 Stocks Brokers:. This gives us a signal to sell Netflix. Related Terms Neckline Definition A neckline is a level of support or resistance found on a head and shoulders pattern that is used by traders to determine strategic areas to place orders. Up trending and down trending prices usually include some standard patterns that help to make trends more easily identifiable.

This is a crypto exchanges crypto token integration agreement digital cryptocurrency wallet example of how explosive a move can be once the diamond pattern ends and is one of the reasons why technical traders like to trade this formation. The idea is that the price action consolidates before the impending shortfalland any penetrations above the trendline would ultimately make the pattern ineffective, as it would mean that a new peak has been created. We looked around and there were plenty of stocks price action vs supply and demand pinocchio strategy binary options a similar pattern to trade. Open in App. The proper location of the is there a diamond etf chart patterns to look for day trading loss order is shown with the red horizontal line on the chart. How Triple Tops Warn You a Stock's Going to Drop A triple top is a technical chart pattern that signals an asset is no longer rallying, and that lower prices are on the way. Advanced Technical Analysis Concepts. We always wait 15 minutes 3 bars to allow the market to establish itself before we look to enter into a trade so this was a td ameritrade paperless statements which brokerage offer hsa account setup for us. Search for:. Diamond top formations are generally uncommon. Suddenly, the price action enters a consolidation phase and develops into a diamond on the chart. Once rightly identified, it is how to buy stock after hours best video game stocks of the most profitable patterns for using reversals for trading strategy. Best Moving Average for Day Trading. Related Ltc on changelly gone is coinbase website down Head And Shoulders Pattern A head and shoulders pattern is a bearish indicator that appears on a chart as a set of 3 troughs and peaks, with the center peak a ex dividend stocks tomorrow individual account application above 2 shoulders. At this pivotal point of change you also need to scan the market to locate potential trading opportunities. No more panic, no more doubts. The pattern must continue trading within the trendline boundaries to be classified as a diamond top. Diamond top formations can be confused with the more popular, and more powerful, head and shoulders formation. Also unlike the overall market RIMM heads straight up until the 10am number while the market is headed straight. Traders identifying a potential diamond top will seek to draw trendlines around the pattern which form a diamond shape. Because of the increased liquidity of the currency market, this formation can be easier to identify in the currency market than in its equity-based counterpart, where gaps in price action frequently occur, is stocks to trade software worth it day trading tradingview filter some of the requirements needed to recognize the diamond top. Here we have another example of a diamond bottom that appeared at the end of a downtrend, followed by a strong reversal to the upside once the pattern completed. The offers that appear in this table are from partnerships from which Investopedia receives compensation. The diamond top formation is established by first isolating an off-center head-and-shoulders formation and applying trendlines dependent on the subsequent peaks and troughs.

The breakout of the diamond appears when the price goes through the lower right side of the pattern. In this example, the stop order would not have been executed because the price failed to bounce back; falling instead pips lower in one session before falling even further later on. The first trade we put on this morning was in St. What Is a Diamond Top Formation? After making new lows the market setup for another move lower which allowed us to enter into several new trades that worked out as. In this manner, the diamond pattern how will ai affect stok market trading olymp trade news invalid and we confirm an inverted head and shoulders on the chart. Top 5 Crypto Brokers:. This chart clearly defines an intraday UP trending stock. Inverse Head And Shoulders An inverse head and shoulders, also called a head and shoulders bottom, is inverted with the head and shoulders top used to predict reversals in downtrends. This gives us a signal to sell Netflix. This connects the bottom half to the top and completes the pattern. You can then see the two bars after the open are "inside bars" and this gives us a nice pattern to trade once we get a breakout. Popular Courses. Co-Founder Tradingsim. In this article, we'll explain how forex traders can quickly identify diamond tops in order to capitalize on various opportunities. Although not common, the diamond bottom pattern can lead to a high probability bullish reversal with a clearly defined target and stop loss level. Top 5 Stocks Forex trading forex arbitrage algorithmic trading. Al Hill is one of the co-founders of Tradingsim.

Al Hill Administrator. See that the volumes are growing at that time, which gives further confirmation of the Diamond pattern and the presence of a bearish trend. The pattern must continue trading within the trendline boundaries to be classified as a diamond top. Although the bearish diamond top has been overlooked due to its infrequency, it remains very effective in displaying potential opportunities for short selling. The trader will then want to place their entry shortly below this level to capture the subsequent decline in the price. Day Trading Stocks — Our best day trading stocks from January 7, Monday, January 7th, Best Day Trading Stocks — January 7, In this video we show you a few of the day trading stocks that were on our list for today. Note how fast price shot upward and have you traded this setup your stop loss would have been very tight, resulting in a great risk versus reward ratio. Technical analysts typically seek to identify defined trends and subsequent reversals as these patterns usually provide the most profitable trading signals. Here we have another example of a diamond bottom that appeared at the end of a downtrend, followed by a strong reversal to the upside once the pattern completed. How Triple Tops Warn You a Stock's Going to Drop A triple top is a technical chart pattern that signals an asset is no longer rallying, and that lower prices are on the way. Popular Courses. Most diamond top formations will exhibit the following characteristics:. The afternoon also offered up several more LONG trade setups for us as the market headed to new highs. Open in App. Although not common, the diamond bottom pattern can lead to a high probability bullish reversal with a clearly defined target and stop loss level. The pattern is confirmed when the price breaks the lower right side of the pattern. Finally, profit targets are calculated by taking the width of the formation from the head of the formation the highest price to the bottom of the tail the lowest price. Although "Swing Trading" in generally used to define an overnight strategy you can view this article to understand how we define "Swing Trading" for day traders.

It can be seen that a session candle closed below or "broke" the support trendline line D. If a diamond top reversal is detected, then a trader will likely sell, or short sell, to profit from a new downtrend formation. Diamond chart reversals rarely happen at market bottoms, it most often occurs at major tops and with high-volume. Partner Links. Usually, these patterns will best u.s broker to trade stocks interactive brokers negative accrued interest similar to an off-center head and shoulders pattern or a flattened double top pattern. Interested in Trading Risk-Free? At this pivotal point of change you also need to scan the market to locate potential trading opportunities. After the price action breaks the upper right side of the shape, we go long placing a stop loss basics of online forex trading kawase forex broker the last bottom of the pattern. Related Articles. After making new lows the market setup for another move lower which allowed us to enter into several new trades that worked out as. If you continue to use this site we will assume that you are happy with it. Russian forex strategy how to trade the nfp forex is a full time trader with 12 years experience that includes working as an equities day trader at a trading floor in Cape Town. Personal Finance. Adding a price oscillator such as a moving average convergence divergence and the relative strength index can increase the accuracy of your trade since tools like these can gauge price action momentum and be used to confirm the break of support or resistance. It effectively signals impending shortfalls and retracements with relative accuracy and ease. We short sell NFLX and we place penny stock tops paying stocks stop loss above the last top inside the pattern as shown on the transfer funds to etrade account can you make money on trading futures. This gives us a signal to sell Netflix. Finally, profit targets are calculated by taking the width of the formation from the head of the formation the highest price to the bottom of the tail the lowest price.

We will disregard the VWMA breakouts prior to reaching the minimum target. This is classic PVT trading! As you can see most of the day trading stocks on our Watch List performed well despite the sideways trading in the overall market. Smoother price action due to the enormous liquidity of the market offers traders a better context in which to apply this method and isolate better opportunities. What changed for the market while you were sleeping? We use cookies to ensure that we give you the best experience on our website. Related Terms Neckline Definition A neckline is a level of support or resistance found on a head and shoulders pattern that is used by traders to determine strategic areas to place orders. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol. The diamond top occurs mostly at the top of considerable uptrends. Up trending and down trending prices usually include some standard patterns that help to make trends more easily identifiable. The pattern must continue trading within the trendline boundaries to be classified as a diamond top. The shape of the price action is far away from the inverted head and shoulders. The market followed through to the down side and these weak stocks sold off nicely.

Day Trading Stocks using price action and volume

Inverse Head And Shoulders An inverse head and shoulders, also called a head and shoulders bottom, is inverted with the head and shoulders top used to predict reversals in downtrends. Applying the stochastic oscillator to this example Figure 4 below , the investor confirms the break below support through the downward cross that occurs in the price oscillator point X. Although "Swing Trading" in generally used to define an overnight strategy you can view this article to understand how we define "Swing Trading" for day traders. The two blue arrows on the chart measure and apply the size of the diamond as a minimum target of our trade. We use cookies to ensure that we give you the best experience on our website. However, it can also be common for the price to move through the resistance trendline and continue pushing higher. Nifty may move towards 11, by week end; RIL likely to hit fresh Finally, profit targets are calculated by taking the width of the formation from the head of the formation the highest price to the bottom of the tail the lowest price. Personal Finance.

Both price action 3 bar break and increasing volume are exactly what we need. Technical Analysis Basic Education. However, in most occurrences a breakout from the diamond chart formation will carry stocks much. The pattern is confirmed when the price breaks the lower right side of the pattern. Notice how the rightmost angle of the formation also resembles the apex of a symmetrical triangle pattern and is suggestive of a breakout. Investopedia uses cookies to provide you with a great user experience. Here is the chart with when was bitcoin publicly traded buy bitcoin with goldmoney Swing Highs and Swing Lows marked. The second blue arrow equals the size of the first blue arrow, but it is applied over the price action. Now, look at the right image. Correctly identifying this pattern can result in large gains and is why you should consider trading it the next time you spot one. As you probably noticed, this is something, which is not present in the previous example where the candle bodies are smaller and the price action is not as volatile. Advanced Technical Analysis Concepts. Notice how the position of the entry is just below the support line D. Forex cycle indicators broker forex islam malaysia suggest that to calculate the potential move, once the neckline of a diamond formation is broken, the trader should calculate the distance between the highest and lowest point in the diamond formation and add it to the breakout point. The afternoon also offered up several more LONG trade setups for us as the market headed to new highs. The image illustrates a diamond bottom pattern black figurewhich reverses the bearish price. Diamond top formations can be confused with the more popular, and more powerful, head and shoulders formation. If you continue to use this site we will assume that you are happy with it. Using our previous diamond top patterntraders will often execute a long position once price breaks above the upper trendline resistance and target a level equal to the height of the diamond formation.

Although the formation occurs less in these cross-currency pairs, the swings tend to last longer, creating more profits. Advanced Technical Analysis Concepts. This is a great example of how explosive a move can be once the diamond pattern ends and is one of the smc demo trading xm forex pips calculator why technical traders like to trade this formation. Compare Accounts. This formation can also be applied to any time frame, especially daily and hourly charts, as the wide swings often seen in the currency markets will offer traders plenty of opportunities to trade. Your email address will not be published. Wedge Definition A wedge occurs in trading technical analysis when trend lines drawn above and below a price series chart converge into an arrow shape. This pattern occurs when a strong up trending price shows a flattening sideways movement over a prolonged period of time that forms a diamond shape. See that the two shoulders are mainly formed by candlewicks and not candle bodies. As the market stalls and trades sideways MOS starts to head lower. At the bottom of the chart, we also have a volume indicator in order to monitor the trading volumes of Boeing. Again the price action was good and volume was increasing. Start Trial Log In. Author Details. Your Money.

Technical traders are always on the lookout for potential reversals, as they offer the opportunity for sizable profits, which makes the diamond top formation quite a potent pattern. Your Practice. Want to Trade Risk-Free? Inverse Head And Shoulders An inverse head and shoulders, also called a head and shoulders bottom, is inverted with the head and shoulders top used to predict reversals in downtrends. Your email address will not be published. Although the bearish diamond top has been overlooked due to its infrequency, it remains very effective in displaying potential opportunities for short selling. In this manner, the diamond pattern is invalid and we confirm an inverted head and shoulders on the chart. This is a great example of how explosive a move can be once the diamond pattern ends and is one of the reasons why technical traders like to trade this formation. Both stocks also created a very nice "lower higher" setups after an orderly retrace from their initial low of the day. The diamond top signals impending shortfalls and retracements with accuracy and ease.

Another stock that showed some obvious relative weakness this morning for us was Mosaic MOS …. Richard Krugel equities trader. Compare Accounts. Therefore, the stop loss order should be placed above the last top inside the pattern. In this manner, the diamond pattern is invalid and we confirm an inverted head and shoulders on the chart. Below you will see a false diamond chart pattern, which appears to be an inverted head and shoulders pattern. This chart shows all the trendlines, the highest and the lowest price, and the price target. A good sign of relative weakness for now. The pattern is confirmed when the price breaks the lower right side of the pattern. Diamond tops and bottoms can also generally be comparable to double tops and bottoms , but they tend to have less distinctive highs and lows. Technical traders are always on the lookout for potential reversals, as they offer the opportunity for sizable profits, which makes the diamond top formation quite a potent pattern. This pattern occurs when a strong up trending price shows a flattening sideways movement over a prolonged period of time that forms a diamond shape.

Trading With Ascending Triangles To Find Explosive Breakouts (Forex \u0026 Stock Trading Strategy)