30-Minute Chart - Big Picture Diamond Bottom
30-Minute Chart - close-up
(CLICK ON THE CHART TO ENLARGE IT)# On dailies we have a classic Diamond Bottom (see thick purple lines on Daily chart). Its failure rate is quite low - 6% or 13% - so it might be worth to trade this pattern.
# The best strategy here is to wait for a breakout: to have the patience to wait for prices to close outside the diamond trendline before entering LONG, which is not too far away from last Friday´s close at 1.9611. Take a look at the 30-minute chart: the diamond trendline to be broken is the thick purple line number ONE and price zone is around 1.9700. Also consider entering LONG at break of 1.9650.
# An aggressive strategy is: if prices break the bullish yellow trendline number THREE on the 30-minute chart prices might go to the bottom of the diamond which is the number TWO purple trendline. This is at price zone 1.9450. Enter LONG there.
# If this Diamond Bottom formation confirms, its minimum target price is quite good: 628 pips from the breaking point. 628-pip minimum target price is the resulf of the top of formation (1.9958 = Jan 30th high) minus its bottom (1.9330 = Jan 22th low).
# In case of its failure, enter SHORT at break of bottom of this diamond at 1.9331, which is a very important support level: 62% fibo of major bullish move 1.8518 to 2.0654 and a major top at the 2nd week of March 2.005.
### It definitely pays-off to trade this Diamond Bottom formation ###
