Back to all patterns

Diamond Top

Chart

Rare bearish reversal. Price expands then contracts forming diamond shape. Often found at major tops.

Success Probability:

72%

Pattern Visualization

How to Identify

Broadening pattern then narrowing
Diamond shape forms
Volume increases then decreases
Breakdown below lower trendline confirms

Trading Tips

Rare but reliable. Short on breakdown. Stop above diamond. Measure diamond height for target.

Rare bearish reversal. Price expands then contracts forming diamond shape. Often found at major tops.

Trading Strategy

Rare but reliable. Short on breakdown. Stop above diamond. Measure diamond height for target.

How to Identify

Broadening pattern then narrowing
Diamond shape forms
Volume increases then decreases
Breakdown below lower trendline confirms

Risk Management

With a 72% success probability, this pattern offers moderate reliability. Use smaller position sizes and require additional confirmation.