Pattern: A diamond is a fairly rare occurrence in the forex market, but you can still sometimes see this formed pattern on a price chart.
The “BRILLIANT” technical analysis figure is formed from support and resistance lines.
Stages of figure formation
It happens like this: first, the price narrows in a narrow corridor, and then expands and narrows again - forming a seemingly resembling figure in the form of a diamond.
Diamond pattern with buy signal
You can buy at the time of the breakdown of price resistance, or after a rollback.
Read also - How to start betting on binary options?
Diamond pattern with a sell signal
It is the same with a sell signal, only the other way around – we sell at the moment of breaking through the support.
In general, the figure of a diamond is complex, often it can even be confused with other figures, for example: head and shoulders.