GBPJPY DIAMOND BOTTOM🎄 Hello Traders, Merry Christmas and Happy New Year! 🎉
As we embrace the festive spirit, let's also dive into an exciting trading opportunity that's shaping up in the Forex market.
📚 Introduction to the Diamond Bottom Pattern:
What is a Diamond Bottom? It's a unique and relatively rare chart formation that signals a potential bullish reversal. This pattern is characterized by a broadening price range followed by a narrowing one, forming a diamond-like shape.
Why It Matters: For technical traders, spotting a Diamond Bottom can be like finding a gem – it often leads to significant price movements if confirmed.
🔎 Analysis of GBPJPY's Diamond Bottom Pattern:
Current Scenario: The GBPJPY has formed a distinctive Diamond Bottom on its hourly chart, hinting at a possible shift in momentum.
Breakout Point: The key level to watch is the breakout point at 180.366. A sustained move above this level could signal the start of a bullish phase.
Risk Strategy: As always, managing risk is crucial. Placing stops below the low prior to the breakout can help mitigate potential downside risks.
Target Zones:
Primary Target Zone:
62% Retracement: 181.202
79% Retracement: 181.440
Extended Target Zone:
127% Extension: 182.092
162% Extension: 182.573
🎁 Trading Insights:
Confirmation is Key: Wait for a confirmed breakout above the Diamond Bottom for a higher probability trade.
Market Context: Keep an eye on overall market trends and news, especially those affecting the GBP and JPY.
🌟 Conclusion:
Opportunity Awaits: The Diamond Bottom pattern in GBPJPY offers a promising setup as we head into the new year. With careful analysis and prudent risk management, this could be a great way to start your trading year.
Here's to a profitable and joyous trading journey ahead! 🥂
Diamondbottom
SPX / NQ - Bull confirmed (ok nothing is 100%)I wrote on Jan 18 that SPX had been looking "optimistic" technically as there were several factors favoring the bulls.
After FOMC meeting yesterday, the bull case has now received further affirmation:
1. Both SPX and NQ are now above their 200 day moving averages
2. Both have broken above a long term trendline resistence
3. SPX is about to "Golden Cross" (ie 50day MA crossing above 200 day MA)
4. SPX has also broken above it's diamond shaped formation
5. Rotation has been back into tech stocks in the past week with Big Techs gaining solid ground
Prior to this, I have mentioned several times that many stocks were forming basing patterns (rounding bottoms, inverse head and shoulder, Adam & Eve) etc. There were several false breakup at the beginning but lately there were more stocks that had golden crosses and with successful breakups.
Many people were looking at the "tree" (in this case the indices eg SPX or NQ) but forgotten about the forest (a whole bunch of stocks which were exhibiting basing patterns, although they still took months to confirm a breakup). Forget the noise, trade the technicals. Keep things simple
We could have pullback in the coming days, but as long we have higher lows or above the 50 or 200 day moving averages etc, the bigger trend is still up. Until these are negated, the risk-reward favor the bulls right now.
p/s not saying to jump blindly into stocks right now (if you haven't done so) but look for those with good entries (either momentum breakup or buying the dips for stocks already trending).
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
MSFT daimond bottomThe diamond bottom pattern is not a common formation but is considered a strong bullish reversal pattern amongst technical analysts. This bullish reversal pattern first expands from the left-hand side and then contracts into a narrower range, until price breaks out above the resistance line and completes the pattern.
Possible Diamond Bottom on S&P500I've been frustrated trying to figure out what the s&p500 is doing as it won't crash and won't recover. I think it might actually be forming a diamond bottom pattern: thepatternsite.com
This is a pretty accurate sign of a bottom. It's likely to fully recover, so if it starts breaking upward don't question it. Good luck!
💎 Diamond Chart PatternAll financial markets, including the stock market, forex market, cryptocurrency market, and futures markets, feature diamond reversal patterns.
Compared to many other traditional chart designs, the diamond pattern is less frequent.
However, it's critical that you understand and recognize the pattern since, when it happens, it can present a great trading opportunity.
In general, a diamond top pattern that follows a rise in market prices offers a greater likelihood of a trade than a diamond bottom pattern that follows a decrease in market prices.
🟢 Bullish Scenario:
After a decline, a bullish diamond pattern known as a diamond bottom appears.
Typically, a diamond bottom is formed by a significant price decline followed by a consolidation phase that creates up and down swing points.
The appearance in this situation will resemble an upside-down head and shoulders design.
The structure's peaks and troughs will be connected in the same manner.
🔴 Bearish Scenario:
The diamond top typically occurs at the peak of significant uptrends.
It efficiently and accurately predicts imminent shortfalls and retracements.
By focusing on a head-and-shoulders structure and adding trendlines to the highs and lows, a diamond top can be found.
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VIX in DIAMOND BUTTOMS!!!!!On the VIX Volatility index , I have observed a diamond pattern, which suggests that the current instability in market sentiment is likely to lead to a rise in market prices. Based on this, I decided to open a long position at the entry price of USD 21.21. I have set the Stop Loss level at USD 19.53 so that if market prices turn worse than expected, I can close the position with minimal loss. And I set the Take Profit at USD 24.26 so that if the market prices reach a certain level, I can automatically close the position at the best possible price. It is important to note that this is only my own observation and does not constitute investment advice. Everyone should make decisions in the financial markets at their own risk.
Diamond Bottom on Bitcoin 4HOn the chart above we can see a clear diamond bottom forming on Bitcoin's 4 hourly chart. This formation could cause BTC to rise to the level of $17,500 where it is also proven to be a diligent support. Lets see if the next few candles can manage to break the resistance of the pattern, which I believe is likely as we have a bull flag forming on lower timeframes.
Diamond bottom breakout in XHBDiamond bottoms are a strong indicator. I believe there is a high probability of the breakout from this diamond will lead to its target around $76. As it gets closer, I think trailing stop losses on stocks would be a good strategy considering inflation continuing and monetary policy temporarily easing. More tightening will likely be necessary as a result of inflation continuing to be a problem.
Diamond to 300$A bit of diversity is good for everyone.
Gold Rush is good. Diamond Rush will be more insane.
if you want to diversify. Buy Diamonds now, sell before 300$. Thanks me later.
The Best predicitons are when u Detect the Push before the Rush ! not when is too late to enter.
Happy Tr4Ding !
Predicting Tesla's Future Price - Comparing Historical PatternsToday we compare Tesla's current candle patterns to a prehistoric falling wedge candle pattern found on Bitcoin on July 15th, 2021. I'm a big fan of history repeating itself so I decided to take a deep dive on the similarities between both charts. They indeed look quite similar. I traced both candle patterns in white, and you can see that Bitcoin printed a falling wedge pattern. Tesla still seems to be printing it's wedge pattern which is slightly different. Inside Tesla's candle pattern formation, it has formed a diamond bottom pattern, a inverse head and shoulders, and a triangle wedge. The diamond bottom is a bullish trading pattern indicating a possible reversal of the current downtrend. The triangle wedge does not seem to be complete yet. I am hoping for it to be a falling wedge pattern just like Bitcoin's because that is bullish and we can see the price of Tesla go over $900 dollars, and attempt to get to $1000 by September. That is a 50% increase in value! :D If it becomes a rising wedge than that is bearish, and the price of Tesla can continue falling close to $500 dollar zone. I believe that we will see more bullish momentum in the stock market at least until September. Some stock's have been falling since last July, and most stocks started to fall last November in 2021. I find it hard to believe we will continue falling all year but if we do fall again it will be sometime in October or November in 2022. That being said, happy trading!
Should we expect BTC to breakout (previous comment illustration)I would like to create a late post here just to clarify the idea that I commented in my previous post. Today BTC's move was as predicted: BTC was down to 39ks with a wick of 38500 (I predicted a wick of 38400, yesterday) and immediately bounded.
Since my early post on 06th April, I still think that if BTC can close above 42200 (EMA 50D) with 4H candle, it will a good sign for BTC to successfully break 49000 (upper trendline of the local parallel channel) and go higher.
Very short-term price prediction for BTCBTC has been ranging since two days. I'm looking at its chart on 1H timeframe and realize that a diamond bottom pattern has formed. Price is on the left lower-edge of the diamond and RSI touches its trendline. I think in few hours this ranging would end and we'll know better about the trend on higher timeframe. Statistically, breakout is favored.
Still I think BTC could reverse to go to see 48K again on the next days.
ICPUSDT is creating a diamond patternThe price created a falling wedge on the daily timeframe and had a nice breakout from it and from the weekly resistance (21.20$)
On the daily timeframe, the price is creating a diamond pattern after a rejection form the 22.25$
How to approach?
For a long scenario, the price needs to have a breakout from the Diamond pattern and 4h resistance and retest it as new support.
Otherwise, if the Diamond pattern is confirmed, we could see a retracement on 0.618 Fibonacci level for new liquidity and a new bullish impulse.
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Keep in mind.
🟣 Purple structure -> Monthly structure.
🔴 Red structure -> Weekly structure.
🔵 Blue structure -> Daily structure.
🟡 Yellow structure -> 4h structure.
ETSY - STRONG DIAMOND REVERSAL PATTERN FORMING!! UP OR DOWN?Hey, Hi, Ho, whats up,
Seems to me like we have a pretty decent diamon pattern playing out here after a more than massive drop to the stock. I have found, and its also pretty well recognized that although rare, diamond patterns are extremely profitable if played correctly.
Not only can you flip short exp calls and puts as the up and down waves are pretty predictable - a long call strategy can give you a really great opportunity to accumulate contracts as the price action goes side to side as you wait for the conclusive breakout.
According to the chart the breakout projection is approx $200 which as I have charted it is a key level of resistance/support so that makes sense. Basically its a gap fill of sorts because the price fell HARD from 200 on.
On the flip side if the pattern fails and its just a continuation of the current down trend the price target is $80-$90 area - here's hoping it doenst go this way.
An importnat note for anyone playing options like myself, there is a significant lopsided amount of PUTS being held in open interest from now until Jan 2024 - obviously this can change however I think its pertinent to notate where it stands now.
Price action looks to be topping at this part of the diamond and should roll over down to about $125 by the end of March. IMHO either June 17 or 1/20/23 exp calls are going to be the most valuable
As of today I like:
6/17/22 ($175's and $240's)
1/20/23 ($230 CALLS)
However time will tell and I will revisit near the end of March or when my bottom alert gets triggered, which ever comes first.
NOT FINANCIAL ADVICE.
Diamond bottom. All eyes on.Etsy has been a phenomenal stock and its been on a very nice downtrend since its top in November. LTF chart printing a lovely diamond bottom. Wait for breakout upwards or buy on next sign of weakness.
RSI coming into bullish territory.
AO showing low volatility so a big move is on the way.
Resistance @ .382 (162.65)
2YR/10YR spread close to inverting, keep your stops close.