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Diamond Top

The Diamond Top has a diamond-like shape, combining broadening and triangle patterns. Signals bearish reversal.

Diamond topDiamond Top: Diamond shape at top → Break bottom → Decline

Pattern Details

Category

reversal

Success Rate

77%

Average Move

-16%

Duration

2-6 weeks

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Initial phase: Expands like broadening pattern
  • 2
    Final phase: Converges like triangle pattern
  • 3
    Overall shape resembles a diamond

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter short position when price breaks below lower boundary
  • ✓
    Volume typically decreases during pattern
  • ✓
    Target = Height of the diamond
  • ✓
    Stop loss placed above highest peak
Trading Tips
  • Rare pattern but highly reliable
  • Combines two patterns: broadening + triangle
  • Confirm with divergence

Statistics

Breakout Statistics
Bullish Breakout23%
Bearish Breakout77%
Performance Metrics
Average Rise+5%
Average Decline-16%
Pullback Rate8%