BTC A diamond shape is being formed. Confirmation terms.
BTC Formed Diamond figure. The price of an important uptrend line, from which everything depends on the reaction of the price (yellow line). Also, the price has been for a long time above the downtrend (white line).
If the uptrend (yellow line), which acts as a support, maintains and the price moves up, then the first goal is $ 9700-9800 A very important area of $ 10500 securing the price above it will mean the beginning of a potential development of the diamond figure, and this a new drive through the local market - in the region of $ 14500-15000
The opposite situation, if at the same time the price fixes below the downtrend (white line) and breaks the upward trend (yellow line), then the first target is the area of $ 7300 -7400 $
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Figure "Diamond" (Diamond, Rhombus).
The figure "Diamond" is quite effective, but a rare figure. This figure is formed after a long uptrend or downtrend and indicates a trend reversal. But it is worth noting the following nuance: if the “Diamond” appeared on the charts with a timeframe of 4 hours or less, the reversal signal is weak, and in some cases the figure indicates a continuation of the existing trend. Thus, the “Diamond” figure most accurately shows a reversal on charts with a scale of daytime or larger.
In shape, it resembles a Rhombus figure, formed by diverging, and then converging lines of support and resistance.
The "Diamond" or "Diamond" shape resembles a combination of two triangles. On the left is an expanding triangle, and on the right is a symmetrical triangle. In fact, we are talking about the formation of two triangles on the graph. At first, divergent appears, and then symmetrical. Together, they form a pattern very similar to a rhombus or a gem. Hence the name of the figure - "Rhombus", "Diamond", "Diamond."
Opposite sides of this geometric figure must be parallel or deviation, if any, is negligible. The figure does not always have to be perfect in shape. A certain deviation in the construction of the figure is allowed, but the more ideal the shape in the form, the stronger the signal for the trader.
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Formation figures in a bear market.
After a rather long downtrend, the price begins to fluctuate with an increase in amplitude, thereby drawing a "Diverging Triangle" on the chart. Then the amplitude of the oscillations damps, the second part of the figure, “Symmetrical Triangle”, appears on the graph. Both of these figures in sequence form - "Rhombus" ("Diamond", "Diamond"). In this case, the upper corner of the figure is in the region of the resistance level, and the lower one is near the support line. If, after the damping of price fluctuations, the trend direction has changed and a resistance line has been broken, this is a buy signal. We are at the beginning of a trend reversal to the upward.
The “Diamond” pattern that appears at the end of a downtrend is less volatile than an identical pattern in an uptrend. Also, at the end of the downtrend, the “Diamond” figure takes longer to form and is more extended than the same figure at the top of the uptrend.
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Factors that enhance the authenticity and strength of the diamond.
1) The figure is formed on the higher timeframes (above 4 hours). The older the timeframe, the more pronounced the sign of a reversal.
2) The brighter the trend was and the longer it existed on the market, the stronger the pattern’s effect on the reversal.
3) If during the formation of the figure there are large candles with slight shadows that break through one of the sides of the rhombus, this also enhances the strength of the figure.
4) If the price rebounds in the correction corridor coincided with the important support / resistance levels that have already been tested in the past, this also confirms that the figure with a high degree of probability will finally form and work out.
______________________________________________
Setting target when working with a figure.
The “Diamond” figure gives a fairly reliable reversal signal and, as a result, good potential profit. Provided that the figure itself is correctly identified on the chart and the input is correct. To apply the pattern correctly, you need to take into account several rules regarding fixing stop loss, take profit and the very entrance to the trade:
1) Do not rush to the deal. It is necessary to wait for the final formation of the model after the cessation of the downtrend.
2) According to numerous price fluctuations on the chart, trend lines are drawn connecting the maximum and minimum points. The “Diamond” figure will appear along the trend lines.
3) You need to prepare for the purchase entrance after the edge of the rhombus ("Diamond") is pierced by candles with large bodies and slight shadows.
4) There are two options for entry, depending on the manner of trading. The first is when breaking through the right edge of the figure. In my opinion, it's stupid how the price can go back. The second option to enter the deal, I think is more intelligent - is the entrance when the price confidently crossed the line of resistance of the figure.
5) Stop loss should be set depending on your risk management. In books on trading, they write at the level of the minimum value of the price in the diamond figure (support). I would advise you to install it much higher, for example, if you trade a bullish model and enter immediately at the break of the rhombus edge, then immediately below the edge of the figure. It is clear that if the price goes below the edge of the figure, then this figure will not be formed. If you have an entrance after a breakout of the resistance of the figure, then I would place the stop loss a little below the broken resistance.
6) The take profit target is determined by the size of the widest part in the “Diamond” figure - this is the distance the price should go in the opposite direction. More precisely, this is the first take profit. If there is real confirmation of a trend reversal, then the price will pass much more. Then we are already trading in the trend.
It is also important if the price is being traded in your favor, and according to the plan you should already fix the profit, then it is advisable to stay in position while you get additional profit instead of the planned one.
Entrance to a deal on a breakthrough of a Rhombus rib. As the price rises, rearrange Stop-Loss higher. You can also make purchases after passing the resistance of the pattern (orange line) when the pattern is confirmed and the trend reverses upward.
If the uptrend (yellow line), which acts as a support, maintains and the price moves up, then the first goal is $ 9700-9800 A very important area of $ 10500 securing the price above it will mean the beginning of a potential development of the diamond figure, and this a new drive through the local market - in the region of $ 14500-15000
The opposite situation, if at the same time the price fixes below the downtrend (white line) and breaks the upward trend (yellow line), then the first target is the area of $ 7300 -7400 $
___________________________________
Figure "Diamond" (Diamond, Rhombus).
The figure "Diamond" is quite effective, but a rare figure. This figure is formed after a long uptrend or downtrend and indicates a trend reversal. But it is worth noting the following nuance: if the “Diamond” appeared on the charts with a timeframe of 4 hours or less, the reversal signal is weak, and in some cases the figure indicates a continuation of the existing trend. Thus, the “Diamond” figure most accurately shows a reversal on charts with a scale of daytime or larger.
In shape, it resembles a Rhombus figure, formed by diverging, and then converging lines of support and resistance.
The "Diamond" or "Diamond" shape resembles a combination of two triangles. On the left is an expanding triangle, and on the right is a symmetrical triangle. In fact, we are talking about the formation of two triangles on the graph. At first, divergent appears, and then symmetrical. Together, they form a pattern very similar to a rhombus or a gem. Hence the name of the figure - "Rhombus", "Diamond", "Diamond."
Opposite sides of this geometric figure must be parallel or deviation, if any, is negligible. The figure does not always have to be perfect in shape. A certain deviation in the construction of the figure is allowed, but the more ideal the shape in the form, the stronger the signal for the trader.
__________________________________
Formation figures in a bear market.
After a rather long downtrend, the price begins to fluctuate with an increase in amplitude, thereby drawing a "Diverging Triangle" on the chart. Then the amplitude of the oscillations damps, the second part of the figure, “Symmetrical Triangle”, appears on the graph. Both of these figures in sequence form - "Rhombus" ("Diamond", "Diamond"). In this case, the upper corner of the figure is in the region of the resistance level, and the lower one is near the support line. If, after the damping of price fluctuations, the trend direction has changed and a resistance line has been broken, this is a buy signal. We are at the beginning of a trend reversal to the upward.
The “Diamond” pattern that appears at the end of a downtrend is less volatile than an identical pattern in an uptrend. Also, at the end of the downtrend, the “Diamond” figure takes longer to form and is more extended than the same figure at the top of the uptrend.
____________________________________________
Factors that enhance the authenticity and strength of the diamond.
1) The figure is formed on the higher timeframes (above 4 hours). The older the timeframe, the more pronounced the sign of a reversal.
2) The brighter the trend was and the longer it existed on the market, the stronger the pattern’s effect on the reversal.
3) If during the formation of the figure there are large candles with slight shadows that break through one of the sides of the rhombus, this also enhances the strength of the figure.
4) If the price rebounds in the correction corridor coincided with the important support / resistance levels that have already been tested in the past, this also confirms that the figure with a high degree of probability will finally form and work out.
______________________________________________
Setting target when working with a figure.
The “Diamond” figure gives a fairly reliable reversal signal and, as a result, good potential profit. Provided that the figure itself is correctly identified on the chart and the input is correct. To apply the pattern correctly, you need to take into account several rules regarding fixing stop loss, take profit and the very entrance to the trade:
1) Do not rush to the deal. It is necessary to wait for the final formation of the model after the cessation of the downtrend.
2) According to numerous price fluctuations on the chart, trend lines are drawn connecting the maximum and minimum points. The “Diamond” figure will appear along the trend lines.
3) You need to prepare for the purchase entrance after the edge of the rhombus ("Diamond") is pierced by candles with large bodies and slight shadows.
4) There are two options for entry, depending on the manner of trading. The first is when breaking through the right edge of the figure. In my opinion, it's stupid how the price can go back. The second option to enter the deal, I think is more intelligent - is the entrance when the price confidently crossed the line of resistance of the figure.
5) Stop loss should be set depending on your risk management. In books on trading, they write at the level of the minimum value of the price in the diamond figure (support). I would advise you to install it much higher, for example, if you trade a bullish model and enter immediately at the break of the rhombus edge, then immediately below the edge of the figure. It is clear that if the price goes below the edge of the figure, then this figure will not be formed. If you have an entrance after a breakout of the resistance of the figure, then I would place the stop loss a little below the broken resistance.
6) The take profit target is determined by the size of the widest part in the “Diamond” figure - this is the distance the price should go in the opposite direction. More precisely, this is the first take profit. If there is real confirmation of a trend reversal, then the price will pass much more. Then we are already trading in the trend.
It is also important if the price is being traded in your favor, and according to the plan you should already fix the profit, then it is advisable to stay in position while you get additional profit instead of the planned one.
Entrance to a deal on a breakthrough of a Rhombus rib. As the price rises, rearrange Stop-Loss higher. You can also make purchases after passing the resistance of the pattern (orange line) when the pattern is confirmed and the trend reverses upward.
Comment:
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FUD news at the state level
On Chinese Central Television (CCTV1), they showed an hourly program that says that cryptocurrencies are unregistered securities, financial fraud.
How cool the news drove under the Bitcoin trading chart. Recently, they shouted something different for hamsters.
Only Bitcoin dropped to an important zone near the intersection of two trending and immediately “news” at such a high level.
Drop passengers off the train?
Someone else has a doubt that this is a project of the existing financial system ??? Countries and their leaders are simply puppets.
FUD news at the state level
On Chinese Central Television (CCTV1), they showed an hourly program that says that cryptocurrencies are unregistered securities, financial fraud.
How cool the news drove under the Bitcoin trading chart. Recently, they shouted something different for hamsters.
Only Bitcoin dropped to an important zone near the intersection of two trending and immediately “news” at such a high level.
Drop passengers off the train?
Someone else has a doubt that this is a project of the existing financial system ??? Countries and their leaders are simply puppets.
Trade closed: target reached:
There is a breakthrough of the uptrend lines (yellow line). The first goal from breaking the uptrend line to the short of $ 7300 -7400 $ has been achieved. It is important now to see where the price will gain a foothold in trade.
Trade active
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Soon pump season altcoins? Head and shoulders. Inverted Dragon.