RULES TO KEEP IN MIND:-
A visible uptrend must take place before the diamond top formation.
The diamond top formation must be well stated with four trend lines that links to each other. They should not be far apart from one another.
Place a sell order at the market after a break and close beneath the uptrend close to the finishing of the pattern.
Traders often apply the stop loss at the very recent swing high before the breakout level.
Traders often determine the target level depending on the calculated move measured. We will calculate the proximity between the highest high and the lowest low in the structure, and plot that downward from the breakout level. This plotted line would serve as the profit exit mark.
The trade will have an additional time stop component. Precisely if 50 candles passes, and the price fails to trigger either the stop loss or target mark, we will have to exit the trade immediately.
A visible uptrend must take place before the diamond top formation.
The diamond top formation must be well stated with four trend lines that links to each other. They should not be far apart from one another.
Place a sell order at the market after a break and close beneath the uptrend close to the finishing of the pattern.
Traders often apply the stop loss at the very recent swing high before the breakout level.
Traders often determine the target level depending on the calculated move measured. We will calculate the proximity between the highest high and the lowest low in the structure, and plot that downward from the breakout level. This plotted line would serve as the profit exit mark.
The trade will have an additional time stop component. Precisely if 50 candles passes, and the price fails to trigger either the stop loss or target mark, we will have to exit the trade immediately.