I have just started studying this pattern as there have been quite a few recently..enough to make me stop and study it. So far I have found they are almost always bearish and often end up forming a Head and Shoulders pattern. But then again, there have been a lot of ugly tops recently. Some tops are just "ugly" and can not be classified )o:
There is a gap up below price..price is hanging there right now. A gap up can offer strong support at the top of the gap. If it holds, TTD may bounce off and go up again. If not......
No recommendation
I measured the fall of a diamond top, IF it happens, by moving the line drawn from the top to the bottom structure trendline protruding downward. If this is indeed a head and shoulders pattern, you can draw a line from the head to the neckline, then project it downward to get a ball park estimate of the possible move down. A H&S pattern would take the target down to 450ish and possibly lower depending on market conditions.
As you can tell, lol, I do not particularly like the label head and shoulders too much because we have been in a bull market ever since I started trading (O:
There is a gap up below price..price is hanging there right now. A gap up can offer strong support at the top of the gap. If it holds, TTD may bounce off and go up again. If not......
No recommendation
I measured the fall of a diamond top, IF it happens, by moving the line drawn from the top to the bottom structure trendline protruding downward. If this is indeed a head and shoulders pattern, you can draw a line from the head to the neckline, then project it downward to get a ball park estimate of the possible move down. A H&S pattern would take the target down to 450ish and possibly lower depending on market conditions.
As you can tell, lol, I do not particularly like the label head and shoulders too much because we have been in a bull market ever since I started trading (O:
Note
A diamond top is a type of broadening pattern that forms a diamond structure which is usually somewhat lopsided.
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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.