Diamond Chart Pattern

Diamond Chart Pattern

In this post we will talk about implication of Diamond chart pattern, description of diamond chart pattern, trading consideration , and etc.

Implication of Diamond chart pattern
A diamond chart pattern forex is catagorized a downtrend signal , this candlestick pattern giving a price reversal opportunity of the current bullish trend to a new bearish trend.

Description of Diamond chart pattern

Diamond chart pattern generally build from over several months in active forex trading market. Market volume stills rise during the formation of this diamond chart pattern. The diamond chart pattern determines a bullish trend reversal to a bearish trend. This pattern occurs because market prices make lower lows and higher highs in a broadening formation . then the market trading range slowly narrows after the lows and the highs peak start moving upward. The trading technical analysis occurs if market price break downward out the diamond chart pattern.

Consider the period of the formation and its relationship to our forex trading time horizons. the period of the formation is determined to be an indicator of the period of the effect of this pattern. The shorter the chart formation the sooner the market price trade. The longer the diamond chart pattern the longer it will take for the market price to trade to its target trading. If you are looking a short term forex trading chance , find for a chart pattern with a short time. If you are looking a longer term Forex trading chance , find for chart pattern with a longer period.

Support can be found at the turning point of the lows and resistance at the top peak of the Diamond.