DIAMOND TOP / BOTTOM:
> A trend reversal pattern indicating the end of up or downward trend - slightly off head & shoulders pattern
> Price increased and declined sharply with significant volume forming a diamond shape
> A mix of expanding and contracting triangle or wedge, often confused with a more popular head & shoulders
> Timing could range from days to months
Key characteristics:
> The price should trending downward then forming a broadening pattern.
> The price pattern increased and decreased sharply before squeezed for rebound
> Timing ranging from days-weeks-or months - a strong long-term reversal pattern
> Most trends will begin with a breakout gap and be followed by several runaway gaps.
Trading Tips:
> Price range determines the target reversal
> TP1 @ the size of the diamond extending the breakout or breakdown distance.
> TP2 can be targeted between 1.0 / 1.618 fibonanci retracement.
> TP3 @ key moving average support / resistance within extended range.
> Putting the chart together with a price oscillator like VWAP / CVD for a better early breakout or breakdown catch.
> Price oscillator can monitor the overall likelihood of a high probability trade and confirming strength/momentum as well as spotting false breakout/breakdown trades.
Always trade with affordable risk and respect your stoploss, nothing 100%
Good Luck!
> A trend reversal pattern indicating the end of up or downward trend - slightly off head & shoulders pattern
> Price increased and declined sharply with significant volume forming a diamond shape
> A mix of expanding and contracting triangle or wedge, often confused with a more popular head & shoulders
> Timing could range from days to months
Key characteristics:
> The price should trending downward then forming a broadening pattern.
> The price pattern increased and decreased sharply before squeezed for rebound
> Timing ranging from days-weeks-or months - a strong long-term reversal pattern
> Most trends will begin with a breakout gap and be followed by several runaway gaps.
Trading Tips:
> Price range determines the target reversal
> TP1 @ the size of the diamond extending the breakout or breakdown distance.
> TP2 can be targeted between 1.0 / 1.618 fibonanci retracement.
> TP3 @ key moving average support / resistance within extended range.
> Putting the chart together with a price oscillator like VWAP / CVD for a better early breakout or breakdown catch.
> Price oscillator can monitor the overall likelihood of a high probability trade and confirming strength/momentum as well as spotting false breakout/breakdown trades.
Always trade with affordable risk and respect your stoploss, nothing 100%
Good Luck!
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.