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Diamond Bottom

The Diamond Bottom appears at the bottom, signaling bullish reversal with a diamond shape.

Diamond bottomDiamond Bottom: Diamond shape at bottom → Break top → Rise

Pattern Details

Category

reversal

Success Rate

79%

Average Move

+19%

Duration

2-6 weeks

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Initial phase: Expands
  • 2
    Final phase: Converges
  • 3
    Appears at bottom of trend

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter long position when price breaks above upper boundary
  • ✓
    Volume should increase on breakout
  • ✓
    Target = Height of the diamond
  • ✓
    Stop loss placed below lowest trough
Trading Tips
  • More effective than Diamond Top
  • High success rate of 79%
  • Look for divergence to confirm

Statistics

Breakout Statistics
Bullish Breakout79%
Bearish Breakout21%
Performance Metrics
Average Rise+19%
Average Decline-4%
Pullback Rate7%