THE DIAMOND TOP CHART PATTERN.
When the price closes below the diamond, this will confirm the move towards the downside.
The crash site (downtrend end) is often near the price level of the launch site (uptrend start). Price trend upward leading to the pattern.
Shape looks like a diamond, but one usually tilted to the side. Prices form higher peaks and lower valleys (a broadening pattern) in the first part of the pattern, then price action narrows with lower peaks and higher valleys. Trendlines connect the peaks and valleys for a diamond shape.
Prices will touch each trendline once or twice. Don't worry if your lines cross some of the price outliers.
Volume trend downward 59% of the time and breakout downward 57% of the time.
High velocity moves after the pattern often follow high velocity moves leading to the pattern, as mentioned earlier the most important part is to wait for the price to close below the diamond before opening a short trade.
SHORT:
Sell: $5354
Buy: $5305 down to $5227.6
Stop loss:$5478
Risk Disclaimer:
Trading cryptocurrency on margin carries a high level of risk(volatile), and may not be suitable for all trades who are yet to understand how to use STOP LOSS. The high degree of leverage can work against you as well as for you.
It is your responsibility to confirm if you want to take this trade or not. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.
If you do not fully understand these risks you must seek independent advice from your financial advisor.
When the price closes below the diamond, this will confirm the move towards the downside.
The crash site (downtrend end) is often near the price level of the launch site (uptrend start). Price trend upward leading to the pattern.
Shape looks like a diamond, but one usually tilted to the side. Prices form higher peaks and lower valleys (a broadening pattern) in the first part of the pattern, then price action narrows with lower peaks and higher valleys. Trendlines connect the peaks and valleys for a diamond shape.
Prices will touch each trendline once or twice. Don't worry if your lines cross some of the price outliers.
Volume trend downward 59% of the time and breakout downward 57% of the time.
High velocity moves after the pattern often follow high velocity moves leading to the pattern, as mentioned earlier the most important part is to wait for the price to close below the diamond before opening a short trade.
SHORT:
Sell: $5354
Buy: $5305 down to $5227.6
Stop loss:$5478
Risk Disclaimer:
Trading cryptocurrency on margin carries a high level of risk(volatile), and may not be suitable for all trades who are yet to understand how to use STOP LOSS. The high degree of leverage can work against you as well as for you.
It is your responsibility to confirm if you want to take this trade or not. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.
If you do not fully understand these risks you must seek independent advice from your financial advisor.