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Continuation Diamond (Bearish)

Trading Term

Diamond patterns usually form over several months in very active markets. Volume remains high during the formation of this pattern. The Continuation Diamond (Bearish) indicates a possible continuation of a downtrend. The Continuation Diamond (Bearish) pattern occurs because prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. The Technical Event® occurs when prices break downward out of the diamond formation to continue the prior downtrend.

Trading Central chart pattern, Continuation Diamond (Bearish).

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