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Diamondpattern

Diamond Reversal Forming On Tesla ($TSLA)This pattern on TSLA fits the outline for a diamond reversal that is referenced on Investopedia. It has all the "classical" facets of a diamond reversal which is a high (A), a low (C) a higher-high. Furthermore, this is happening alongside a very similar pattern on NFLX and some bearish patterns on many other stocks. Similar forms also occurred on SPX in 2021-2222 and Bitcoin in 2021. The move up from the 2023 lows has the form of an ABC up... which suggests another 5 wave downmove on-par with or even exceeding the previous downmove is on the way. The move off the highs was a whole 75% so even presuming a moderate 1:1 ratio, the next wave down could be very aggressive which means that an excellent short could be lining up. Trade safe and be careful out there.
NASDAQ:TSLAShort
by RogueEconomics
Diamond Pattern Trading: How to Spot and TradeSome patterns scream for attention, while others sneak up on traders who aren’t looking closely. The diamond pattern is one of those sneaky ones — a formation that hints at a brewing reversal but requires a sharp eye to catch. Let’s dive into this pattern, how it forms, and the best strategies for effectively trading diamond top and bottom patterns. What Is a Diamond Pattern? The diamond pattern is a reversal chart pattern that occurs after a strong trend, indicating a potential shift in market direction. It forms when price action expands and then contracts, creating a diamond-shaped contour. This pattern is rare compared to triangles or head-and-shoulders formations, but it often signals significant price moves when it appears. There Are Two Types of Diamond Patterns: Diamond Top Pattern – A 🐻 Reversal Pattern That Appears After an Uptrend. Diamond Bottom Pattern – A 🐂 Reversal Pattern That Forms After a Downtrend. These patterns can help traders identify potential turning points and prepare for a change in trend. How Can You Identify a Diamond Pattern in Trading? To spot a diamond pattern trading setup, look for the following characteristics: Broadening Formation: The price action initially expands, creating higher highs and lower lows. Narrowing Structure: After the expansion, the price contracts, creating lower highs and higher lows. Symmetrical Shape: When trendlines are drawn connecting the highs and lows, they create a diamond shape. Breakout Point: The pattern is confirmed when the price breaks out of the structure, either to the upside or downside. While it might resemble a diamond quilt pattern or a diamond tile pattern on the chart, the key difference is its role as a market reversal signal. Diamond Top Pattern: Bearish Reversal A diamond top pattern forms at the peak of an uptrend and signals that bullish momentum is weakening. Traders often look for a downside breakout to confirm the reversal. What Does a Diamond Top Pattern Typically Involve? Identify the diamond formation after a strong uptrend. Wait for a breakout below the lower trendline with increased volume. Enter a short position once the breakout is confirmed. Set a stop-loss above the recent high. Target price: Measure the height of the pattern and project it downward. This pattern suggests buyers are losing control, and a downtrend will likely follow. 📊 Diamond Top in Action Between late 2024 and early 2025, Bitcoin surged toward $105,000. Following this uptrend, price action began to shift: the candles first spread wider, then started to tighten — ultimately forming what resembled a diamond top on the daily chart. The pattern formed over several weeks, showing the hallmark structure: broad on the left, symmetrical tightening on the right, with support and resistance lines converging. Shortly after the narrowing phase was completed, Bitcoin broke downward — a typical outcome of a diamond top pattern. The price declined sharply over several days, validating the pattern and suggesting a broader correction. Analysts watching the pattern noted that while it wasn’t perfectly symmetrical (as real-world patterns rarely are), the structure was clear enough to support the reversal thesis. The breakout marked a momentum shift as bullish pressure faded and sellers gained temporary control. Following the initial drop, Bitcoin stabilized and began consolidating. This sideways movement is common after strong breakouts — reflecting indecision and market recalibration. Diamond Bottom Pattern: Bullish Reversal A diamond bottom pattern appears at the end of a downtrend, indicating a potential shift to bullish momentum. How a Diamond Bottom Pattern Is Typically Interpreted Identify the diamond shape forming after a downtrend. Wait for an upside breakout above the upper trendline with substantial volume. Enter a long position once the breakout is confirmed. Set a stop-loss below the recent low. Target price: Measure the pattern’s height and project it upward. This pattern signals that selling pressure decreases, and buyers may take control. Why the Diamond Pattern Is Important for Traders Reliable Reversal Signal. The diamond pattern trading setup strongly indicates trend reversals. Clear Entry and Exit Points. Well-defined breakout levels make risk management easier. Works in Different Markets. The diamond pattern remains effective when trading stocks, forex, or crypto. Final Thoughts The diamond pattern is a rare but powerful tool that can help traders confidently spot trend reversals. Whether you’re trading a diamond top pattern for bearish setups or a diamond bottom pattern for bullish breakouts, understanding this formation can give you an edge in the market. So, traders, have you spotted a diamond pattern trading setup recently? Share your experiences and strategies in the comments! This analysis is performed on historical data, does not relate to current market conditions, is for educational purposes only, and is not a trading recommendation.
Education
by WhiteBIT
7
Diamond Pattern Trading: How to Spot and Trade This SignalSome patterns scream for attention, while others sneak up on traders who aren’t looking closely. The diamond pattern is one of those sneaky ones—a formation that hints at a brewing reversal but requires a sharp eye to catch. Let’s dive into what this pattern looks like, how it forms, and the best strategies for effectively trading diamond top patterns and diamond bottom patterns. What Is a Diamond Pattern? The diamond pattern is a reversal chart pattern that occurs after a strong trend, indicating a potential shift in market direction. It forms when price action expands and then contracts, creating a shape that resembles a diamond. This pattern is rare compared to triangles or head and shoulders formations, but it often signals significant price moves when it appears. There are two types of diamond patterns: Diamond Top Pattern – A 🐻 Reversal Pattern That Appears After an Uptrend. Diamond Bottom Pattern – A 🐂 Reversal Pattern That Forms After a Downtrend. These patterns can help traders identify potential turning points and prepare for a change in trend. How to Identify a Diamond Pattern in Trading? To spot a diamond pattern trading setup, look for the following characteristics: Broadening Formation: The price action initially expands, creating higher highs and lower lows. Narrowing Structure: After the expansion, the price contracts, forming lower highs and higher lows. Symmetrical Shape: When trendlines are drawn connecting the highs and lows, they create a diamond shape. Breakout Point: The pattern is confirmed when the price breaks out of the structure, either to the upside or downside. While it might resemble a diamond quilt pattern or diamond tile pattern on the chart, the key difference is its role as a market reversal signal. Diamond Top Pattern: Bearish Reversal A diamond top pattern forms at the peak of an uptrend and signals that bullish momentum is weakening. Traders often look for a downside breakout to confirm the reversal. How to Trade a Diamond Top Pattern: Identify the diamond formation after a strong uptrend. Wait for a breakout below the lower trendline with increased volume. Enter a short position once the breakout is confirmed. Set a stop-loss above the recent high. Target price: Measure the height of the pattern and project it downward. This pattern suggests buyers are losing control, and a downtrend will likely follow. Diamond Bottom Pattern: Bullish Reversal A diamond bottom pattern appears at the end of a downtrend, indicating a potential shift to bullish momentum. How to Trade a Diamond Bottom Pattern: Identify the diamond shape forming after a downtrend. Wait for an upside breakout above the upper trendline with strong volume. Enter a long position once the breakout is confirmed. Set a stop-loss below the recent low. Target price: Measure the pattern’s height and project it upward. This pattern signals that selling pressure decreases, and buyers may take control. Why the Diamond Pattern Is Important for Traders Reliable Reversal Signal. The diamond pattern trading setup strongly indicates trend reversals. Clear Entry and Exit Points. Well-defined breakout levels make risk management easier. Works in Different Markets. Whether trading stocks, forex, or crypto, the diamond pattern remains effective. Final Thoughts The diamond pattern is a rare but powerful tool that can help traders confidently spot trend reversals. Whether you’re trading a diamond top pattern for bearish setups or a diamond bottom pattern for bullish breakouts, understanding this formation can give you an edge in the market. So, traders, have you spotted a diamond pattern trading setup recently? Share your experiences and strategies in the comments!
WHITEBIT:BTCUSDEducation
by WhiteBIT
Alikze »» BTC | Bullish angle pattern | bullish channel - 8H🔍 Technical analysis: Bullish angle pattern in the bullish channel And the pullback is broken into the swing - According to the movement scenario predicted in the previous analysis , by forming an ascending diamond pattern, it managed to break the dynamic trigger and move towards the supply areas. - It is currently moving in an ascending channel in the 8H time frame. - With the formation of an ascending corner pattern, it is undergoing a temporary correction to the green box. - Therefore, it can encounter support after correction in the green box area and continue its growth up to the supply range. 💎 In addition, if the correction is sharp, there will be a possibility of breaking the green box, up to the range of 62500. 💎 So, in case of zigzag correction in the green box area, it can meet the demand and touch the target of the supply area. ⚠️ In addition, if below the area of ​​62500 candles, the bullish scenario will be invalidated and should be re-examined and updated.⚠️ »»»«««»»»«««»»»««« Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support. Best Regards,❤️ Alikze. »»»«««»»»«««»»»««« MEXC:BTCUSDT
Long
by UnknownUnicorn7266498
Market Indecision 2024! (Diamond Reversal)It has been an interesting few years in the markets. One of the hottest bull runs coming off the Pandemic lows to a 7 month bear market in 2022, followed by another epic bull run! We are now at a major decision point for markets. Up or Down! Recession fears abound while small caps are ready to pop waiting on rate cuts. The S&P as lopsided as ever with Mag 7 carrying the entire index for 2 years. Where are we going next? At every "potential" market top, the convergence between an ascending channel meets a potential descending channel forming a diamond shaped pattern. This pattern is the indecision point of any given market, but don't get bearish yet. A diamond reversal pattern can break in either direction, reversal or continuation . I have documented both the historical moves and the future potential paths. Remember that markets are not pre-ordained to do anything. They have to make decisions, and while you may have already decided your personal view, you can let the market confirm your biases one step at a time. React! Don't predict! 1) Halfway mark from 10/23 run to $6000 target -4/19 bottom starts 2nd leg -Bull Flag Consolidation 2) Diamond Reversal (Minor) -Rate cuts? Yes/No -And Why? Economy vs Inflation **Upside Breakout on 9/13 3) Rate cuts hinted for Sep FOMC -Halted 38% run from 10/23 -Halted 62% run from 10/22 4) Required drop to form minor/major diamond of indecision. -Blamed on Japanese Carry Trade* -Note the drop is perfect 78.6% retrace from 4/19 Run *Japanese Carry Trade margin collapse was instead caused by formation. **This was also opportunistic early rotation into treasuries. 5) Bullish rejection of minor diamond -Resilient CPI and Jobs provide cover for soft landing narrative. -Note the rejection confirms on diamond neutral line @ 38.2% 4/19 fib and healthy 20WMA bounce 6) Rate Cuts!!! -Rate cut odds are near equal between .25 vs .50 -Note a rejection confirms Double Top -Breakout confirms $6000 7) Blow off top!!! -Note the identical pattern to 2022 top *The Ancient Trendline is based on a back-dated creation of the S&P 500 by Standard & Poors as the index was founded in 1957 8) Bullish Ascending Channel starts in Jun-Oct 2022 -A short break here confirms new bearish descending channel and major diamond reversal. -This will be your bearish hint towards bearish 2025 but don't short yet!! -No break confirms ascending channel but EOY will give one more opportunity for a break. 9) End of Year typical Tax Loss Harvesting, Santa Rally, etc. -Unlikely to see a bullish breakout here -If Continuation occurs, it will be Jan into Feb 10) Last chance for Bears! -Need bearish breakdown to confirm both diamond and descending channel 11) Descension confirmation marks several opportunities on path down for bullish break outs -Initial Support @ $4800 (20% drop from top) -Secondary Support @ $4450 (25% drop from top) -Massive Support @ $4144 (30% drop from top) Best of luck in 2025 whatever you decide! Game on!
CBOE:SPX
by jasonchristy
4
Bitcoin available scenarios 💹 © Alt-Season®🎉For me , there are two scenarios ahead of Bitcoin 1️⃣ The price will reach a new ATH and start falling from a level that only the market maker knows (Diamond) , which after the new ATH, we should look for signs of falling in lower time frames. 2️⃣ The price should be rejected from this QM level (the level in which it is located), which is necessary for Bitcoin to be sidelined for at least a month or two to clear the market maker's purchases. 📌 Fail Analysis: price goes to higher levels ( more than three-month candle ATR) without any consolidation 🥂 Still enjoy the alt season at this level
Short
by forexvid
GBPJPY DIAMOND BOTTOM🎄 Hello Traders, Merry Christmas and Happy New Year! 🎉 As we embrace the festive spirit, let's also dive into an exciting trading opportunity that's shaping up in the Forex market. 📚 Introduction to the Diamond Bottom Pattern: What is a Diamond Bottom? It's a unique and relatively rare chart formation that signals a potential bullish reversal. This pattern is characterized by a broadening price range followed by a narrowing one, forming a diamond-like shape. Why It Matters: For technical traders, spotting a Diamond Bottom can be like finding a gem – it often leads to significant price movements if confirmed. 🔎 Analysis of GBPJPY's Diamond Bottom Pattern: Current Scenario: The GBPJPY has formed a distinctive Diamond Bottom on its hourly chart, hinting at a possible shift in momentum. Breakout Point: The key level to watch is the breakout point at 180.366. A sustained move above this level could signal the start of a bullish phase. Risk Strategy: As always, managing risk is crucial. Placing stops below the low prior to the breakout can help mitigate potential downside risks. Target Zones: Primary Target Zone: 62% Retracement: 181.202 79% Retracement: 181.440 Extended Target Zone: 127% Extension: 182.092 162% Extension: 182.573 🎁 Trading Insights: Confirmation is Key: Wait for a confirmed breakout above the Diamond Bottom for a higher probability trade. Market Context: Keep an eye on overall market trends and news, especially those affecting the GBP and JPY. 🌟 Conclusion: Opportunity Awaits: The Diamond Bottom pattern in GBPJPY offers a promising setup as we head into the new year. With careful analysis and prudent risk management, this could be a great way to start your trading year. Here's to a profitable and joyous trading journey ahead! 🥂
Long
by TradeChartPatternsLikeThePros
3
Diamond Pattern: How To GuideThe Diamond pattern, an often-overlooked gem in technical analysis, holds the potential for substantial profits. 💜 If you appreciate our guides, support us with boost button 💜 Despite its rarity, this unique pattern can be a valuable asset for traders. In this article, we'll explore the essentials of the Diamond pattern, from its formation principles to practical trading strategies. Understanding the Diamond Pattern: The Diamond pattern, a reversal pattern, takes shape at the top of an uptrend or the bottom of a downtrend. Recognized by its diamond shape, the pattern signifies a period of decreased volatility, with market participants positioning themselves for the next significant move. Diamond Pattern Formation: Top of Uptrend: Starts with an expanding triangle, followed by a converging triangle. The second wave of players triggers a rapid price decline, forming the Diamond pattern. Bottom of Downtrend: Bears induce a sideways movement, and the second wave of traders, motivated by greed, initiates active selling. Profit-taking by the first wave of sellers leads to the formation of the Diamond pattern. Trading Strategies: Opening a Selling Position: Sell when the price breaks the lower right support line and the candlestick closes below it. Place a Stop Loss behind the nearest high. Potential profit: 60-80% of the Diamond's height. Alternative Selling Approach: Enter at the breakaway of the Diamond's low for a conservative approach. Place Stop Loss behind the nearest low or Diamond's high. Opening a Buying Position: Buy when the price breaks the upper right resistance line, and the candlestick closes above it. Place a Stop Loss behind the nearest low. Potential profit: 60-80% of the Diamond pattern size. Alternative Buying Approach: Enter at the breakaway of the Diamond's high for a conservative option. Place Stop Loss behind the nearest low or Diamond's low. Closing Thoughts: Mastering the Diamond pattern requires patience, technical analysis skills, and disciplined risk management. Despite its infrequency on larger timeframes, the potential for significant profits makes the Diamond pattern a valuable tool in a trader's toolkit. Traders should exercise caution, ensuring the pattern is complete, and adhere to risk management rules, especially with larger stop-loss sizes on larger timeframes.
Education
by Vestinda
Expected continuation diamond pattern formationA continuation diamond pattern, also known as a diamond bottom or bullish diamond, is a technical analysis chart pattern that usually occurs during an uptrend and signifies a temporary pause or consolidation before the price resumes its upward movement. It's considered a continuation pattern because it typically results in the continuation of the existing bullish trend. PLEASE NOTE THAT: This chart analysis is only for reference purpose. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade
BSE:ASALCBR
by hardeepssethi
GBPJPY | Will BoJ allow Diamond to shine? From technical point of view, we have clear Diamond pattern on a daily timeframe . As you can see on my chart, latest rally broke through the upper dynamic resistance, but got quickly pushed down while creating equal highs. Market closed at a key lvl static support area and dynamic one , from Diamond formation. Based on just technical side, I'm expecting small correction to retest 182.080 , it is Camarilla long breakout pivot point. After possible rejection, price should move South and break below diamond pattern with possible move to Short breakout Camarilla point at 180.470. But what about fundamental side? Well, Bank of Japan might overshadow other Banks in the upcoming week , if Ueda and other members decide to give us something unexpected. Due to experts, there is possibility for another YCC tweak, but I don't think it will be enough to support YEN to higher extend. Ex-BoJ member thinks that negative rates may stop by year-end, and that's exactly what we are looking for. Some word or single thought that could signalize potential end of negative rates. Carefully watch that meeting since it will be crucial. And here we have Bank of England. BoE is expected to keep the Bank Rate unchanged at 5.25% . Everything will depend on narration of BoE's members. Pause + Neutral stance won't cause any sharp moves in my opinion. Have a great day y'all! All the best
Short
by fxintouch
1