Just getting caught up with some older posts as Matt and I were
examining the new TRADE IDEAS template (it looks great). The
RUT 5 minute does display a small bearish triangle pattern for a
few points.
Diamond
pattern is a
rally to a new high and weakness to an intermediate support level,
a second rally to a higher high and a sharp decline through
support, followed by a modest third rally and a decline through
longer-term trend.
Because
diamonds are very large patterns, the technical implications are
often extremely large. Technical targets are derived by subtracting
the difference between the record high and the reaction low from
the eventual breakout level. The breakout level will be determined
by a trend line drawn from the reaction low to the first
significant low on the right side of the pattern.
I'm not a technician, but I believe it's the same outcome, but
on a 5-minute time frame. So (correct me if wrong,
Steve), it would be an intraday trade to maybe into tomorrow
only.
RUT 5 View Showing Diamond
Posted by steve on 5th of Sep 2012 at 12:38 pm
$RUT - Chart Link
Just getting caught up with some older posts as Matt and I were examining the new TRADE IDEAS template (it looks great). The RUT 5 minute does display a small bearish triangle pattern for a few points.
does it mean buy small
Posted by coolhat on 5th of Sep 2012 at 12:54 pm
does it mean buy small caps?
Diamond pattern is a rally to a new
Posted by frtaylor on 5th of Sep 2012 at 01:00 pm
Diamond pattern is a rally to a new high and weakness to an intermediate support level, a second rally to a higher high and a sharp decline through support, followed by a modest third rally and a decline through longer-term trend.
Because diamonds are very large patterns, the technical implications are often extremely large. Technical targets are derived by subtracting the difference between the record high and the reaction low from the eventual breakout level. The breakout level will be determined by a trend line drawn from the reaction low to the first significant low on the right side of the pattern.
frtaylor - thanks for the
Posted by steve on 5th of Sep 2012 at 01:02 pm
frtaylor - thanks for the description of the diamond pattern but here we were simply referencing a small diamond on the 5 minute chart of the RUT.
understood. just trying to help
Posted by frtaylor on 5th of Sep 2012 at 01:03 pm
understood. just trying to help coolhat.
Since it is a 5
Posted by hirahara on 5th of Sep 2012 at 01:06 pm
Since it is a 5 min chart, how different would the outcome be? Breakout to down or up as opposed to a pattern taking longer to form.
I'm not a technician, but
Posted by frtaylor on 5th of Sep 2012 at 01:08 pm
I'm not a technician, but I believe it's the same outcome, but on a 5-minute time frame. So (correct me if wrong, Steve), it would be an intraday trade to maybe into tomorrow only.
Thank u
Posted by hirahara on 5th of Sep 2012 at 01:10 pm
Thank u
Speaking of Diamonds - ZLC
Posted by steve on 5th of Sep 2012 at 01:04 pm
Speaking of Diamonds - ZLC won't quit. They must have some rare pieces....lol
going parabolic, do you have
Posted by frtaylor on 5th of Sep 2012 at 01:16 pm
going parabolic, do you have a shorting technique for patterns like this? Look at a 60 min time frame, etc.?
Almost a double in less
Posted by frtaylor on 5th of Sep 2012 at 01:06 pm
Almost a double in less than two weeks!