free forex trading signals from Diamond Tops and Bottoms

free forex trading signals from Diamond Tops and Bottoms

The identification guidelines for diamonds and generate free forex trading signals
Look for a quick price rise or decline. Diamond tops have prices entering
the diamond from the bottom and bottoms have prices entering
from the top. The quick rise or decline, a straight-line run, is key.
Yes, you will find other diamonds forming as a normal congestion
pattern, but the ones when prices race forward are easiest to spot.

Look for prices to broaden out (higher peaks and lower valleys) then
narrow forming a diamond shape. The diamond usually tilts to one side.

Price should touch each trendline one or twice, but it depends on
how you draw the diamond and whether prices cooperate with
you. Don’t be alarmed about cutting off price tails when you
draw the trendlines. Sometimes you have to use your imagination to see the actual diamond shape.

Sixty-six percent have a downward volume trend within the diamond.

Trading and Trading Tips

Here are additional trading tips for free forex signals
• Diamonds with short-term price trends leading to the pattern
perform better than intermediate- or long-term trends. Diamond
tops with downward breakouts show the best results: Short-term
declines leading to the pattern yielded 24% declines postbreakout;
intermediate-term trends averaged a 22% decline, and longterm
declines had postbreakout declines of 15%.

Avoid overhead resistance or underlying support. Diamonds with
throwbacks or pullbacks have postbreakout performance that suffers.
For example, diamond bottoms with upward breakouts and
throwbacks show rises averaging 30%. Those without throwbacks
climb 43%.

Select tall patterns for the best free forex signals performance.

The measure rule for diamonds is no different than for other chart
patterns. Measure the height (highest peak to lowest valley) and add it to
the price of an upward breakout or subtract it from the breakout price of
a downward breakout. A breakout occurs when price closes outside the
diamond trendline boundary.