The diamond chart pattern can signal a bullish or a bearish reversal or continuation of an existing trend. It represents a temporary battle between buyers and sellers. At its last part (lines E and H below) it is formatted from consecutive lower highs (indication that sellers have the upper hand) and simultaneously consecutive higher lows […]
Read MoreArchive: November, 2012
Swing trade based on descending triangle
To trade a descending triangle first of all you must spot one that is clear formatted. The clear formation of the upper line is more important than the clear formation of the lower line. In case that the upper line, which is basically the trendline in a downtrend, is not clearly defined then it is […]
Read MoreHow to spot the beginning of a new trend
An uptrend can be defined as two consecutive higher lows and higher highs. So, if we have spotted an already existing uptrend then we expect that after the higher low there will be a higher high. Failure to accomplish the expected higher high is an indication that the existing uptrend is weakening and a new […]
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