After a big rally this pattern is starting to make a correction. Looking at W1 chart we see price is bouncing from a strong level of S/R - MACD extremely overtended and crossing MA - Stochastics pointing down Here at D1 chart we have a relatively rare chart formation used in technical analysis. When a diamond top forms, it forms at the conclusion of a long uptrend in price, and it indicates an imminent reversal of the trend. As such, the diamond top formation generates a very strong sell signal.
We have also: - up trendline broken
We can enter on candle close below pattern or sell right now based on H4 analysis. First target would be 1.1500 Ideal target shown on chart
Managing a trade is very dinamic, i can not update all the time.
twitterfx8
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I guess you stopped out on this?
LingYan
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Long time no see, Fulltime Trader nice analysis!
twitterfx8
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@FullTimeTrader at what level this idea will become invalidated
twitterfx8
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@FullTimeTrader is it not necessary to have the highpoint and low point connected, I mean in above chart the price never reached your low point, it is just you have drawn the blue line.
twitterfx8
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Please reply to my question
FullTimeTrader
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@twitterfx8, I can tell you there are no exact rules to trade a pattern. For example i prefer to enter as soon as possible on candle close below trendline shown in chart(agressive enter).
A conservative entry would be to wait for a break below low point, its your selection.
twitterfx8
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@FullTimeTrader, OK, thanks, It worked out well. So the idea was only based on Diamond pattern? No other indicators.
FullTimeTrader
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@twitterfx8, i used various tools to make an analysis (Elliot Wave, Divergence, Harmonic, Chart Patterns), if they match then i find a high probability trade. Here at tradingview i publish a simplified chart.