For my pal in Texas,
The technical target of a diamond is the difference
between the high and the low........
ADCT 2000 diamond top pattern.
Diamonds are complex reversal patterns because volume trends often suggest accumulation. Volume is heaviest at lows and upside breakouts but moves to new and relative highs are always characterized by one day reversals.
Although the spike to the reaction low may be violent, the fact that stock holders are willing to surrender their stock at drastically lower prices without substantive fundamental news portends lower prices.
Downside breakouts often lead to small 2-3% declines followed by an immediate test of the breakout level. If the stock closes above this level (now resistance) for any reason the pattern becomes invalid.
Charts and comments are NEVER INTENDED AS ADVICE...
Thanks for visiting...
00K
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EMAIL- hotspotcharting-ook@yahoo.com
