free forex trading signals from Diamond Tops and Bottoms The identification guidelines for diamonds and generate 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. 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 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 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.