FullTimeTrader
Short

EURUSD-D1. Big diamond pattern and other reasons to short

FX:EURUSD   Euro / U.S. Dollar
After a big rally this pattern is starting to make a correction.
Looking at W1 chart we see price is bouncing from a strong level of S/R
- MACD extremely overtended and crossing MA
- Stochastics pointing down
Here at D1 chart we have a relatively rare chart formation used in technical analysis . When a diamond top forms, it forms at the conclusion of a long uptrend in price, and it indicates an imminent reversal of the trend. As such, the diamond top formation generates a very strong sell signal.

We have also:
- up trendline broken

We can enter on candle close below pattern or sell right now based on H4 analysis.
First target would be 1.1500
Ideal target shown on chart

Best regards



Comment: Nice move in our direction, moving SL to BE

Comments

Managing a trade is very dinamic, i can not update all the time.
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I guess you stopped out on this?
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Long time no see, Fulltime Trader nice analysis!
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@FullTimeTrader at what level this idea will become invalidated
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twitterfx8 twitterfx8
@FullTimeTrader is it not necessary to have the highpoint and low point connected, I mean in above chart the price never reached your low point, it is just you have drawn the blue line.
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twitterfx8 twitterfx8
Please reply to my question
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FullTimeTrader twitterfx8
@twitterfx8, I can tell you there are no exact rules to trade a pattern. For example i prefer to enter as soon as possible on candle close below trendline shown in chart(agressive enter).
A conservative entry would be to wait for a break below low point, its your selection.
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twitterfx8 FullTimeTrader
@FullTimeTrader, OK, thanks, It worked out well. So the idea was only based on Diamond pattern? No other indicators.
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FullTimeTrader twitterfx8
@twitterfx8, i used various tools to make an analysis (Elliot Wave, Divergence, Harmonic, Chart Patterns), if they match then i find a high probability trade. Here at tradingview i publish a simplified chart.
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Wow ive never heard of this
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