Diamond Bottom
BullishReversalAdvancedWild swings that tighten into a diamond, then buyers break out.
No verdictBitcoin 4H: 2 trades, won 50%, avg trade +3.2% vs random day +1.2% (too few trades to judge). Backtest
Price falls into a low, then bounces.
step 1/6
Trade rules
| Direction | Long (buy) |
|---|---|
| Entry | After the right-side lower high is confirmed, a candle CLOSES above the upper-right line (from the highest high through that lower high), within that side's length plus 5 candles. |
| Cancelled if | Price trades below the right-side higher low before that close. |
| Target | Widest part, projected from the breakout |
3 common mistakes
- Buying while the swings are still getting wider.
- Calling any messy range a diamond: you need the wide middle and the squeeze after it.
- Forgetting it needs a decline into it to be a bottom.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 · too few trades to judge | 2 | 50% | +3.19% | +1.23% |
| US large caps (50) · 1D · 2016-2026 · too few trades to judge | 14 | 29% | −0.82% | +2.49% |
No verdictNot enough signals to judge.