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FOREX CHART PATTERNS AND TREND FORMATIONS

1. Diamond

These chart patterns are one of the most rare classical trend formations on the price
chart in the forex market, but its forecasting does not increase from it.
The figures "diamond" represent all over again extending, and then a narrowed range of
fluctuations of the prices where the period of expansion of fluctuations approximately
corresponds to the period of their narrowing and as a whole is similar to a rhombus.
On charts of large scale (from one day) it is turned as a rule, and on charst of fine scale
(it is less than day) does not specify the further direction of movement in the forex
market.

2. Double bottom

Double bottom chart formations refer to a lower rate at which the currency had declined
to twice, but failed to penetrate. Generally, the asset will trade within that range, but if a
breakout occurs, it can be expected to be a substantial move.

3. Double top

Double top forex chart patterns refer to a higher rate that the currency has risen to
twice, but failed to exceed. In this formations the asset can generally be expected to
trade within the range in the chart. If a breakout occurs, just as with a double bottom, it
is usually a substantial movement.
If you pay attention, you'll notice that the model of a double top chart pattern resembles
the letter "M".

Point A - maximum as a result of an ascending trend