Pattern DIAMOND / Brilliant — this is a rare graphical model in the financial markets and the forex market, including (sometimes also referred to as pattern «Diamond»), but its correct identification, it allows the trader to forex enough to earn good money, the structure of patterns as well like clear cutting of precious stones, namely that it is probably so named. Let us today and discuss all the features of trade patterns and the identification of «Brilliant.» This model can be formed on the forex all time intervals, but the longer the interval, the more reliable it actually!
Decided to publish on the site description of this pattern, since it had just been formed in several currency pairs: GBPUSD, AUDUSD, and worked very well. In this case those traders who do not know how to trade may continue to face the same problems.
First of all we must take into account the fact that the pattern of «diamond» is a reversal pattern and is formed on the bottom or the top of the trend. Although exceptions to the breakdown of the trend lines are the same!
It should also be noted that in fact the figure of «Brilliant» is formed in those moments when the price just does not «know» where to go further and is a 2 in this joint triangle: expanding (expands formation) and the usual — a symmetrical triangle, and hence boundaries of the diamond are the lines of the triangle.
That’s why we in fact can not be aware that these figures are formed, but knowing the patterns of trade in the forex chart patterns, to enter the market correctly and make a profit.
The opening of trading positions to buy [Forex & Crypto Trading Strategy]:
Trade within the pattern, «Brilliant» is not desirable and not recommended!
Therefore, we will sell it on the breakdown of the trend lines formed by the pattern.
An example of a pattern «Brilliant» or «Diamond» on GBPUSD (H1):
1) Conclude a deal on one of the following:
a) on the breakdown of the trend line (or better even after closing the candle above the trend line, which price breaks).
b) above the highest point of the diamond
s) above the top of the latest formations
d) to retest a broken line pattern Brilliant
But I would like to recommend the opening of transactions is (a) and (g)!
2) Stop-loss set at least the last diamond pattern or a minimum of generally very graphic shapes.
3) Take-profit set to a distance equal to the height of the figure «Brilliant» deferred from the point of breakdown formation or partially close the transaction on the same level as the rest position of the swap at breakeven.
4) Of course I recommend to consider when signing a deal appropriateness of its opening, as if it does not satisfy the rules of Money Management, then such transactions are better omitted.
And here is another example in the AUDUSD (H1):
For transactions on sale — check the conditions!
And now I suggest that you see on the chart a few patterns that we can see you, not even knowing of the existence of diamond or diamond model:
1) Using the simple laws or regulations charting forex (note the green dotted trend line), we can see that in fact what model would not have been formed, the breakdown of the trend line drawn for at least 2 m extrema and closing the candle above the line and gives us the signal to enter the market! Moreover, this version of the entrance to the GBPUSD has appeared much earlier than the signal at the entrance to the market according to the pattern of diamond, and even retest the trend line with a stop loss at less than the original input pattern of trading strategies.
2) Calculate the profit target and you can just without the knowledge of the terms of trade forex this model — it’s 2nd trend dotted line drawn on the 2nd previous highs …
In both cases, all that useful — it’s just a trend line pattern and its breakdown! I recall that just prior to the site examined earlier inputs and pattern of «head and shoulders«
MT4 templates for graphical models Brilliant I do not spread, because everything is in the figures above.
Since the model is quite rare in the forex market, forex, you should not think of it yourself and take any combination without confirmation as a model of «Brilliant», themselves need to understand that it is fraught with errors and loss of your deposit !