Chart Analysis

Technical AnalysisTypes of ChartsNaked chartsRenko chartsJapanese CandlesticksTypes of CandlesticksChart PatternsWolfe WavesSupport/Resistance Lines

Technical Indicators

Ichimoku Kinko HyoPivots PointsCamarilla Pivot PointsFibonacci RetracementsThe Fractal indicatorMoving Average - MACDSSL indicatorRelative Strength Index (RSI)Stochastic OscillatorWilliams %RAccumulation / distributionBollinger BandsCommodity Channel Index (CCI)Parabolic SARDMI and ADXAverage True RangeVIX Volatility IndexForex/Oil/Gold correlationMarket cyclesVolume Spread AnalysisSupertrend indicator

Diamonds - forex chart figures

Triangles Triangles Symmetrical broadening wedge Symmetrical broadening wedge
Descending wedges  Wedges Broadening wedges  Broadening wedges
Flags and pennants  Flags and pennants right-angled broadening wedge Right-angled broadening wedge
Head and shoulders Head and shoulders Double tops  Double (or triple)
 tops (or bottoms)
Rectangle Rectangles cup with handle  Cup with handle
Rectangle  Diamonds   

 

Diamonds

The summit diamond is a reversal chart figure that consists of two symmetrical and juxtaposed triangles that form a rhombus.

The summit diamond shows the slowdown in an uptrend, followed by a price reversal in 80% of cases. The target, which is equal to the height of the diamond, is reached in 95% of cases.

The break through the diamond indicates a good sell signal, but conservative traders can wait for a pullback on the diamond support level, which occurs in 59% of cases after the break.

Diamond summit

The concave diamond

The concave diamond is a reversal chart figure that forms after a downtrend.

The concave diamond shows a downward trend that is followed by a price reversal in 82% of cases. The target, equal to the height of the diamond, is reached in 79% of cases.

The break through the diamond indicates a good buy signal, which is followed by a pullback on the diamond support 43% of the time following the break.

Concave diamond

Visual example of a diamond-shaped chart pattern

Diamonds aren't always easy to spot, and identifying the breakout is crucial for trading success. We typically follow 2 rules to confirm a break. First, a reliable break occurs when a candle opens out of the box. Second, the volume must increase at that time.

Graphique diamant sommet

Graphique diamant creux