Diamond

Diamond
The formation of diamond is commonly called as diamond top. It is described as a rare chart making utilized in the technical analysis. With the formation of diamond top, it creates a conclusion of the long uptrend in cost and it shows a forthcoming reversal of trend. The formation of a diamond top generates a strong selling signal. The technical analysts and traders identify the formation of a diamond by identifying formation of head and shoulder. Generally, four trend lines are drawn. Still, if lower supporting line breaks, the traders consider it that the asset costs reverses and starts rising again.