Diamond Forex Pattern

The diamond formation tends to occur at the top of the trend. The price activity may be outlined by a shape resembling a diamond. The increase and decrease in trading volume closely mimic the combination of divergent and convergent support and resistance lines(see the Figure below).

Upon breakout, volume picks up substantially. The price target is the height of the diamond, measured from the breakout point.

See also

Common Gap Forex Pattern

Breakaway Gap Forex Pattern

Wedge Forex Pattern

Descending Triangle Forex Pattern

Ascending Triangle Forex Pattern

Flag Forex Pattern

Symmetric Triangle Forex Pattern

Pennant Forex Pattern

Head-and-Shoulders Forex Pattern

Inverse Head-and-Shoulders Forex Pattern

Double Bottom Forex Pattern

Double Top Forex Pattern

Triple Bottom Forex Pattern

Diamond Forex Pattern

Top Forex Brokers Reviews here