Analysis: Diamond Bottom | USD\CHF

Submitted by ChartSecret.com on Wed, 07/22/2009 - 08:21
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Diamond Bottom Chart Pattern

The USD\CHF had created a Diamond chart pattern at 1-hour charts, about 70 pips in size. This pattern is one of the most reliable reversal patterns, and is able to create complete trend reversal after its breakout. One should remember that until the breakout Resistance trendline the pattern is not yet active and trades should not be taken.

Traders should be aware of the 1.0700 Resistance level few pips after the Resistance trendline, as it can stop the price and prevent it from reaching its projected target.

Target
The minimal target for this pattern is 70 pips, measured from the breakout price. However, these patterns usually cause strong trend reversals.

Trading
Long Trade will be taken after price breaks out and pulls back to the Resistance trendline.

Discussion
Discuss and ask questions regarding this pattern here.