LTC formed diamond which usually indicate price reversal. If however diamond break upward, which is the case with our formation, there is a big potential that price will rise proportionally to length of price movement from bottom to diamond. Volume underneath diamond suggest that we are dealing wit congestion - accumulation phase and price rise is almost unstoppable.
source - thepatternsite.com/diamondt.html (Thomas N. Bulkowski)
Overall performance rank for up/down breakouts (1 is best): 21 out of 23; 7 out of 21
* Price trend - Upward leading to the pattern.
* Shape - Looks like a diamond, but one usually tilted to the side.
* Trendlines - Prices form higher peaks and lower valleys (a broadening pattern) in the first part of the pattern, then price action narrows with lower peaks and higher valleys. Trendlines connect the peaks and valleys for a diamond shape.
* Touches - Prices will touch each trendline once or twice. Don't worry if your lines cross some of the price outliers.
* Volume - Downward trend 67% of the time.
* Breakout - Downward 69% of the time.
This information is not a recommendation to buy or sell.
source - thepatternsite.com/diamondt.html (Thomas N. Bulkowski)
Overall performance rank for up/down breakouts (1 is best): 21 out of 23; 7 out of 21
* Price trend - Upward leading to the pattern.
* Shape - Looks like a diamond, but one usually tilted to the side.
* Trendlines - Prices form higher peaks and lower valleys (a broadening pattern) in the first part of the pattern, then price action narrows with lower peaks and higher valleys. Trendlines connect the peaks and valleys for a diamond shape.
* Touches - Prices will touch each trendline once or twice. Don't worry if your lines cross some of the price outliers.
* Volume - Downward trend 67% of the time.
* Breakout - Downward 69% of the time.
This information is not a recommendation to buy or sell.