Diamond Patterns
A diamond can be both a formation of the trend reversal as
well as its continuation. This system has the shape of two interconnected
triangles: the expansion and the isosceles.
The volume increases with the increase of price ranges (the highest
should be at the highest or lowest point of the diamond), to decrease as the ranges
decrease to the increase when breaking the formation. The direction of breaking
out of the formation tells us whether we are dealing with a reversal
(dislocation in the opposite direction to the movement) or continuation
(dislocation towards the previous movement).
Diamonds appear rather rarely and look like two connected
triangles: inverted and symmetrical. The formation of a formation can take
place after the formation of both triangles.
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