Continuation Diamond
A diamond-shaped chart pattern that forms mid-trend and then breaks in the same direction the trend was going.
In plain English
A diamond-shaped chart pattern that forms mid-trend and then breaks in the same direction the trend was going.
A diamond pattern widens and then narrows, like a broadening formation followed by a triangle. When it appears in the middle of a trend and price breaks out the same way the trend was running, it is a continuation diamond.
It is rare and easy to see in hindsight. Treat it as a pause pattern, and use the break as your signal.
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