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Continuation Diamond (Bullish)

Trading Term

Diamond patterns usually form over several months in very active markets. Volume will remain high during the formation of this pattern. The Continuation Diamond (Bullish) pattern forms 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 upward out of the diamond formation to continue the prior uptrend.

Trading Central chart example of Continuation Diamond (Bullish) pattern.

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