The diamond chart pattern is a technique used by traders to spot
potential reversals and make profitable trading decisions. Diamond
patterns often emerging provide clues about future market movements.
In a diamond pattern, the price action carves out a symmetrical shape
that resembles a diamond. This occurs as buyers and sellers battle for
control, getting squeezed into an ever-tightening range. The tension
builds beneath the surface until one group ultimately breaks the
stalemate.