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Diamond figure fluctuations
This figure is one of the rarest classical figures on the price chart, but its forecasting does not increase from it.
The figure "diamond" represents another full expansion. It also illustrates a narrower range of price fluctuations, which is when the period of expansion of fluctuations corresponds to the period of narrowing, and overall, is similar to a rhombus.
On charts of large-scale (from one day), it is turned as a rule. On charts of fine-scale (less than one day), it does not specify the further direction of the movement.
Example of a "diamond" figure
The pessimistic price reference point of a diamond is equal to the width of a diamond (to distance from a maximum up to a minimum), which is signed from a break point in the corresponding side.The general rules of turned figures:
As a rule, all models of a turn of an ascending trend (the head-shoulders, double top, and threefold top) name models of the top and mirror him. This is known as models of the basis.
In comparison with models of the basis, models in the top majority of the markets are shorter on time and more volatile. It is connected with the psychology of participants within the market and a difference in perception of profitable and unprofitable positions.
As far as pessimistic and optimistic price reference points, they have been defined above and are more likely to suit the strong correction of the previous trend.