Loading ...TA Q&A
Can someone explain and re-direct to information on DIAMONDS in chartology?
How to notice/see a diamond in chartology?
What size/look?
What is the meaning? reversal of different?
TIA
EDIT ADDED
RAMBUS TIMELESS TUTORIAL : DIAMOND PATTERNS
https://rambus1.com/2013/03/17/diamonds-are-an-investors-best-friend/
Reference Edwards and McGee. A diamond is really just a version of a H&S. It is a reversal pattern
Thank you
Rambus has a tutorial I posted above
A Diamond pattern is just like any Pattern it can be a continuation OR a Reversal
They are harder to spot than the run of the mill flags and pennants and wedges …but just as valid…even more so actually
MOST ( roughly 75% ) patterns break out in the same direction they came from..if you want to play the odds ( Continuation)
But it’s safer to wait for the breakout
Thank you RAMBUS!
“it can be a continuation”
Yes, and that’s my rather firm conviction in this case, in line with previous remarks on this Risk On market. Albeit not for long.
‘Albeit not for long’. . .
Correct.
I see a DUST DIAMOND BO a Bull FLAG. Seems obvious to me what follows which I believe is UP. I agree with FGC on waiting for a BO of DIAMOND but my presented case as (already) based on a BO of of Bull-Flag.
We will know soon
Generally when looking at a diamond shape you will notice that the tip of the top is a resistance point whereas the bottom of the diamond is on a support line. That is how I define them anyway. Price then plays out between those two points in shorter and shorter moves until it finally breaks one way or the other. Its a curiosity of charts that price responds to geometry more than news or fundamentals. So its a ood example of purely technical movements in that respect but they can be hard to spot if they are small and they may not even look like a diamond any longer if they break early in the pattern. Yes they are tradeable to an extent but you need to stay on your toes and watch closely if trading one minute and 5 minute charts. Odds are you won’t really become fully aware you even have a diamond in formation until it has put in the peak and the low points and begun to contract back down. If you see one on a smaller degree chart it just means price is consolidating and not going anywhere. Best to stand aside and wait for a genuine directional decision.