Bullish Diamond chart pattern

Bullish Diamond chart pattern

🔅A diamond chart pattern is a technical analysis pattern commonly used to detect trend reversals.

🔅It occurs when the price starts to flatten after a steady uptrend or downtrend, which leaves a diamond-shaped formation on the chart.

🔅A bullish diamond pattern, called a diamond bottom, occurs after a downtrend.

🔅We usually see a substantial price move down and then a consolidation phase that carves up and down swing points on a diamond bottom.

🔅In the case of a Bullish Diamond chart pattern, the stop loss should be placed at the previous low of the pattern.

🔅The limitation for the target will be the previous resistance level which was formed before by the price action.