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Diamond

FIGURE OF TECHNICAL ANALYSIS "DIAMOND"Today we will talk about the figure of technical analysis "Diamond" Diamond is not so common, so the figure is not so popular with traders. But when the figure appears on the chart, you will get a great opportunity to earn big profits. Identification The diamond appears after a strong upward movement, which stops at some point and an expanding triangle begins to form on the chart. After that, the expansion stops and the reverse process begins – a narrowing of the price, so the second part of the diamond is formed. The narrowing leads to the formation of a second triangle, from which the price breaks down, creating a strong downtrend. As you understand, a diamond is a reversal figure. In addition to the reversal at the peak, the diamond may appear at the bottom, starting a new bullish trend. The same rules apply for the diamond at the bottom of the trend as for the diamond at the top of the trend. Trading After you have found a diamond on the chart, you should wait for the breakout . The breakout point serves as the entry point. As soon as the price breaks out of the second part of the diamond, you can open a position. The stop loss is usually set above the last maximum, outside the triangle. To calculate the potential profit , you need to measure the height of the diamond - 60-80% of this value will be your goal. You should understand that this is only the first profit goal, since the price very often goes even further, after the diamond. Therefore, at this point, you can use a strategy with closing part of the profit. For conservative traders, there is a second entry point – it will be the price movement for the minimum of a diamond. Also, for such traders, it is possible to set a stop loss beyond the maximum of the diamond. Conclusion The figure is suitable for medium-term traders who hold positions for several days. It is the medium-term diamond that is potentially able to bring big profits. In addition, it is worth remembering a couple of rules: It is not worth trading inside a diamond; And don't forget to set a stop! Be careful and don't miss your diamond!
Education
by DeGRAM
3
$DIA — Market Forecast 12/18/21We officially filled the gap on Friday, 12/17, because we had actually bounced off the moving average before we could fully fill it on Tuesday and Wednesday. Gaps on equities will fill about 80% of the time, and then the markets tend to reverse 80% of the time after a gap fills. We have gaps immediately above and below the market right now; I think that we'll see another drop with the continuation of this downside momentum before the possibility of a bounce in an attempt to fill that upside gap — I don’t think it will fill right away, but keep your eyes on it. I have been very accurate with the market forecasts that I send to my clients every weekend, so here are my thoughts on a few of the indices...
AMEX:DIA
by OptionsAddicts
MIN - Diamonds are a girls best friendDiamonds have a future especially now that buyers are concerned with providence. The major swing that occurs from Oct 20 from the lows 37.40ish to the peak in Aug 21 is where I've taken my analysis from. It's a slow mover but consistent for a technical setup. Price has hit a 61.8 Fibonacci retracement of the major swing and price is now heading up. The 1st level to take profit is indicated by the red line of 127% Fibonacci Extention - 75.20ish of this swing. It may double top at the previous high. Diamonds are in demand especially Australian mined diamonds. Just my plan - do your own due diligence before you trade.
ASX:MINLong
by gillianpatrice
1