Watch out for false breakouts and enter the trade with a trend confirmation
by Constantino CM
The "Diamond" pattern is very reliable.
"Diamond" patterns are both continuation and reversal patterns.
If the pattern occurs in the midst of a trend, it will present a continuation of the trend in the same direction prior to the formation.
by Constantino CM
The "Diamond" pattern is very reliable.
"Diamond" patterns are both continuation and reversal patterns.
If the pattern occurs in the midst of a trend, it will present a continuation of the trend in the same direction prior to the formation.
Note
If the pattern occurs at the tops or bottoms, it will be a reversal pattern.In a continuation pattern, wait for a breakout of the "Diamond" pattern and trade in the direction of the trend prior to the pattern formation.
In reversal formations, trade in the opposite direction of the prior trend.
Confirm breakouts and breakdowns by price-action.
Note
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.