BITCOIN DOUBLE DIAMOND PATTERN

Diamond top formations are generally uncommon. However, when they do form, they can be a strong indicator for an impending reversal of the current uptrend. This pattern occurs when a strong up trending price shows a flattening sideways movement over a prolonged period of time that forms a diamond shape.

Technical traders are always on the lookout for potential reversals, as they offer the opportunity for sizable profits, which makes the diamond top formation quite a potent pattern. Technicians suggest that to calculate the potential move, once the neckline of a diamond formation is broken, the trader should calculate the distance between the highest and lowest point in the diamond formation and add it to the breakout point.

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