Diamond Bottom – Chart Pattern

Diamond Bottom – A diamond pattern forms on a chart in a downtrend. Typically the taller the diamond pattern the more reliable the indicator. Volume should also diminish as the diamond shape forms.

Confirmation of Chart Pattern – The Diamond Bottom is confirmed with a bullish breakout of the chart pattern.

Psychology of Pattern – This chart pattern is a form of consolidation where the bears are unable to find further conviction to the downtrend and the market reverses as the bears run out of steam.

Market Signal – A Diamond Bottom is a bullish reversal

Diamond Bottom - Chart Pattern

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