[James Arnold]

The Forex diamond pattern is formed on the technical analysis chart infrequently, but it is so effective that experts consider it a classic. If this pattern appears on the chart, it should definitely be considered a signal of an upcoming trend reversal. Many traders use the diamond pattern https://fbs.com/analytics/tips/how-to-trade-diamond-chart-patterns-35386 for stocks because this figure has shown its maximum practicality with these assets.

[James Arnold]

Market reversal is hard to catch. We cannot know in advance whether we have a reversal or just a correction. But here reversal market patterns come to the rescue, special patterns that allow you to predict a reversal with an accuracy much higher than 25%. When fluctuations add up in a certain sequence, you can analyze and compare with one of the known patterns. The figure of a diamond is just one of those. To learn how to correctly trade diamond pattern https://fbs.com/analytics/tips/how-to-trade-diamond-chart-patterns-35386 go to the FBS broker website. Everything is described in detail there.

[James Arnold]

By the way, this graphic figure is very rare, but it is quite effective. In the process of formation, diamond patterns https://fbs.com/analytics/tips/how-to-trade-diamond-chart-patterns-35386 looks like a regular but rather volatile flat. Diamond should have a good margin of time. This is not a pattern for short-term speculation, but at least a medium-term figure.

[James Arnold]

The reason for the rarity of the Diamond model lies in the fact that its formation takes quite a long time. At the same time, the uniqueness of the model requires label this as a reversal pattern https://fbs.com/analytics/tips/how-to-trade-diamond-chart-patterns-35386 It is formed, respectively, either at the top of an uptrend, speaking of its change to a downward one, or at the market bottom, indicating that the market’s fall will soon be replaced by growth. That is, the Diamond pattern can be either bullish or bearish, depending on the specific situation.

[James Arnold]

This figure is a classic reversal Price Action pattern. It rarely appears on the chart, so it is very difficult for beginners to identify it. However, if diamond top formation happened, then this means that we should expect a price reversal. Find out more about it on the FBS broker website.

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