Pattern of “diamond”

The pattern of “diamond” is a reversal pattern and is formed on the bottom or the top of the trend. Although exceptions to the breakdown of the trend lines are the same!

It should also be noted that in fact the figure of “Brilliant” is formed in those moments when the price just does not “know” where to go further and is a 2 in this joint triangle: expanding (expands formation) and the usual - a symmetrical triangle, and hence boundaries of the diamond are the lines of the triangle.

That’s why we in fact can not be aware that these figures are formed, but knowing the patterns of trade in the forex chart patterns, to enter the market correctly and make a profit.

The opening of trading positions to buy:

Trade within the pattern, “Brilliant” is not desirable and not recommended!

Therefore, we will sell it on the breakdown of the trend lines formed by the pattern.

An example of a pattern “Brilliant” or “Diamond” on GBPUSD (H1):

Pattern of "Brilliant" in GBPUSD (H1)

1) Conclude a deal on one of the following:

a) on the breakdown of the trend line (or better even after closing the candle above the trend line, which price breaks).

b) above the highest point of the diamond

s) above the top of the latest formations

d) to retest a broken line pattern Brilliant

But I would like to recommend the opening of transactions is (a) and (g)!

2) Stop-loss set at least the last diamond pattern or a minimum of generally very graphic shapes.

3) Take-profit set to a distance equal to the height of the figure “Brilliant” deferred from the point of breakdown formation or partially close the transaction on the same level as the rest position of the swap at breakeven.

4) Of course I recommend to consider when signing a deal appropriateness of its opening, as if it does not satisfy the rules of Money Management, then such transactions are better omitted.