maneeshaggarwal

Diamond Pattern - Trend reversal

NSE:NIFTY   Nifty 50 Index
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Diamond Pattern

downtrend starts at 9855 ---- stop loss will be 9905 ---- tgt 9717-9680

The diamond top and bottom are reversal patterns. It represents a rally to a new high with a drop to a support level followed by a rally to make a new high and a quick decline, breaking the support level to make a higher low. The bounce from the higher low is then followed by a rally, but making a lower high instead. Once this behavior is identified, prices then break the trend line connecting the first and second lows and start to decline further.
Thanks, but today Nifty did go to 9924... would that count as a lower high. Also it did make a higher low at 8938. Does this still mean reversal pattern?
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