The rarest of gems... Diamonds are Forever
Updated
Greetings Earthlings,
Here we see the rarest of patterns, the often imitated, never duplicated "Diamond Bottom Pattern". The literature is not widely available but the current BTC price action fits the rule.
Now you see a lot of people predicting doom and gloom... The death of Bitcoin and crypto all together. But what better to save the asset than the most coveted gem of the all... The Diamond!
"The diamond top and bottom are reversal patterns. It represents a rally to a new high with a drop to a support level followed by a rally to make a new high and a quick decline, breaking the support level to make a higher low. The bounce from the higher low is then followed by a rally, but making a lower high instead. Once this behavior is identified, prices then break the trend line connecting the first and second lows and start to decline further.
In the case of a diamond bottom, prices follow the same pattern, but instead make a new low and a new high followed by subsequent higher low and lower high. The diamond top and bottom patterns, despite its fancy name merely exhibits the trading sentiment and a period of congestion before a new trend emerges, depending on the chart time frame that you are using. The diamond patterns are infrequent and therefore relatively rare to spot them. However, the most ideal places to find the diamond patterns is within the head and shoulders patterns or within the triangle patterns." Credit to ProfitF.com
Notice the last sentence... often found within Head and Shoulders patterns. Currently we are in an inverted H&S. Is this it? TBD... If it is a diamond reversal, expect the breakout to complete the Inv H&S and head north. In my opinion, the current price action is not clearly a bullish wedge.
Happy Trading
#FlintstonesGazoo #TheGreatGazoo
Gazoo: "But wait, surely there must be others more qualified than I".
Andre Benjamin: “Even the sun goes down, heroes eventually die/Horoscopes often lie, and sometimes ‘y’/Nothin’ is for sho, nothin’ is for certain, nothin’ lasts forever”
Here we see the rarest of patterns, the often imitated, never duplicated "Diamond Bottom Pattern". The literature is not widely available but the current BTC price action fits the rule.
Now you see a lot of people predicting doom and gloom... The death of Bitcoin and crypto all together. But what better to save the asset than the most coveted gem of the all... The Diamond!
"The diamond top and bottom are reversal patterns. It represents a rally to a new high with a drop to a support level followed by a rally to make a new high and a quick decline, breaking the support level to make a higher low. The bounce from the higher low is then followed by a rally, but making a lower high instead. Once this behavior is identified, prices then break the trend line connecting the first and second lows and start to decline further.
In the case of a diamond bottom, prices follow the same pattern, but instead make a new low and a new high followed by subsequent higher low and lower high. The diamond top and bottom patterns, despite its fancy name merely exhibits the trading sentiment and a period of congestion before a new trend emerges, depending on the chart time frame that you are using. The diamond patterns are infrequent and therefore relatively rare to spot them. However, the most ideal places to find the diamond patterns is within the head and shoulders patterns or within the triangle patterns." Credit to ProfitF.com
Notice the last sentence... often found within Head and Shoulders patterns. Currently we are in an inverted H&S. Is this it? TBD... If it is a diamond reversal, expect the breakout to complete the Inv H&S and head north. In my opinion, the current price action is not clearly a bullish wedge.
Happy Trading
#FlintstonesGazoo #TheGreatGazoo
Gazoo: "But wait, surely there must be others more qualified than I".
Andre Benjamin: “Even the sun goes down, heroes eventually die/Horoscopes often lie, and sometimes ‘y’/Nothin’ is for sho, nothin’ is for certain, nothin’ lasts forever”
Trade closed manually
Diamond broke down....Trade active
The Diamond is back and bigger than before...
Related publications
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.