Diamond chart pattern

Diamond chart pattern

The diamond is a figure chartist unusual change of trend, which occurs almost exclusively in uptrends, with bearish implications only a very short time, he never said a primary trend change.

It is an unreliable figure with irregular volumes in its formation. In fact the sum is formed as an inverted triangle followed by a symmetrical triangle, which should lead to a reversal of the curve of contributions. The unreliability of the figure, the common feature of triangular figures, advised to follow closely, as though it is considered a figure of change of short-term trend in secondary or tertiary movements, one should expect the curve to leave the quotes diamond to act, selling out quickly if you lose the support line usually falls rapidly as the price, or buying if you break the resistance line, in which case the increase is more moderate and irregular. As in all figures charting the turnover at the time of rupture of the figure, it is essential to determine the reliability of it.

In the example, Aud / Usd after the start of a promising upward trend, this trend has been truncated by a diamond.