Strong Bullish Trend. Volume should remain through the pattern formation
Usually form over several months in very active markets, Volume remains high during the formation of the pattern. The Technical Analysis occurs when prices break upward out of the diamond formation to continue the prior uptrend.
Usually form over several months in very active markets, Volume remains high during the formation of the pattern. The Technical Analysis occurs when prices break upward out of the diamond formation to continue the prior uptrend.
- Volume is an important factor to consider. A lack of a volume throughout the pattern is an indication that this pattern may not be reliable.
- Support can be found at the turning point of the lows and resistance at the top peak of the Diamond.
Underlying Behavior
This pattern forms because prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. The Technical Analysis occurs when prices break upward out of the diamond formation to continue the prior uptrend.
source : http://www.trending123.com/patterns/Continuation-Diamond-Chart-Pattern.html
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