Bearish Continuous Diamond
Candlestick chart patterns can be very reliable at times if you know how to use them correctly. Right now $E-mini S&P 500 Futures(DEC4) (ESmain.US)$ is in the process of confirming the formation of a bearish diamond formation.
You can see in the picture below the diamond forming. You do not see this candlestick formation on the SPY very often. Tipycally when the price action enters into this diamond in a downtrend or bearish then the price acton will exit the diamond bearishly. That is the expected price move out of the bearish diamond. Remember the market will do whatever it wants so you cant place your bets anywhere until you get an actual exit from the diamond.
Always be weary of the false breakout or the pump-fake that the market makers love to do. Sometimes the market will do the exact opposite move that every investor in the market is thinking. So save some capital to potentially cover your trade when the time comes that the market pulls the rug from under your feet.
You can see in the picture below the diamond forming. You do not see this candlestick formation on the SPY very often. Tipycally when the price action enters into this diamond in a downtrend or bearish then the price acton will exit the diamond bearishly. That is the expected price move out of the bearish diamond. Remember the market will do whatever it wants so you cant place your bets anywhere until you get an actual exit from the diamond.
Always be weary of the false breakout or the pump-fake that the market makers love to do. Sometimes the market will do the exact opposite move that every investor in the market is thinking. So save some capital to potentially cover your trade when the time comes that the market pulls the rug from under your feet.
Here is a bearish diamond formed on $Visa (V.US)$. This is a warped diamond but it wtill follows the same principal. Sometimes you will see ugly diamonds a candle wick extending out of the diamond or a diamond with odd angles A and consolidation around the walls of the diamond. But the walls of the diamond are essentially dynamic support and resistance lines. So treat them as such.
Here is another example of a bearish diamond with the ticker $Moderna (MRNA.US)$. This one looks a little lopsided but the same rules apply. If it entered the diamond bearish then it should exit bearish theoretically.
I should mention that upon further examination on the 4 hour candles for $SPDR S&P 500 ETF (SPY.US)$ I can see this much tighter diamond like you can see below. This one would be valid as well. If this one is the true correct diamond then it is about to break very soon.
Always remember that the market will do whatever it wants. Sometimes these candlestick patters dont turn out as you planned. So be patient and wait for the right moment to enter into a trade. Here is a diamond on $Silver Futures(MAR5) (SImain.US)$
Here is another example with the ticker $iShares Russell 2000 ETF (IWM.US)$. In this example the market did not follow the typical bearish diamond pattern. In this case the price action entered bearish and exited bullish.
$SPDR Dow Jones Industrial Average Trust (DIA.US)$ $Invesco QQQ Trust (QQQ.US)$ $SPDR S&P 500 ETF (SPY.US)$ $iShares Russell 2000 ETF (IWM.US)$ $VIX Index Futures(DEC4) (VXmain.US)$ $Gold Futures(FEB5) (GCmain.US)$ $Powershares Exchange Traded Fd Tst Db Us Dollar Index Bullish Fund Etf (UUP.US)$ $SPDR Gold ETF (GLD.US)$ $iShares Silver Trust (SLV.US)$ $Ishares Iboxx $ High Yield Corporate Bond Etf (HYG.US)$ $Ishares Iboxx $ Investment Grade Corporate Bond Etf (LQD.US)$ $iShares 20+ Year Treasury Bond ETF (TLT.US)$ $Crude Oil Futures(JAN5) (CLmain.US)$
$TENCENT (00700.HK)$ $SSE Composite Index (000001.SH)$ $CSI 300 Index (000300.SH)$ $CSI 300 Index (000300.SH)$ $FTSE Singapore Straits Time Index (.STI.SG)$ $NIO-SW (09866.HK)$ $NIO Inc. USD OV (NIO.SG)$ $NIO Inc (NIO.US)$ $BILIBILI-W (09626.HK)$ $Bilibili (BILI.US)$ $Baidu (BIDU.US)$ $BIDU-SW (09888.HK)$ $XPeng (XPEV.US)$ $Li Auto (LI.US)$ $BYD COMPANY (01211.HK)$ $BYD Company Limited (002594.SZ)$ $S&P/ASX 200 (.XJO.AU)$ $FTSE Singapore Straits Time Index (.STI.SG)$
$Apple (AAPL.US)$ $Tesla (TSLA.US)$ $Microsoft (MSFT.US)$ $Amazon (AMZN.US)$ $NVIDIA (NVDA.US)$ $Meta Platforms (META.US)$ $Alphabet-C (GOOG.US)$
$Chevron (CVX.US)$ $Phillips 66 (PSX.US)$ $Valero Energy (VLO.US)$ $Devon Energy (DVN.US)$ $Occidental Petroleum (OXY.US)$ $W&T Offshore (WTI.US)$ $United States Oil Fund LP (USO.US)$ $United Sts Brent Oil Fd Lp Unit (BNO.US)$ $Imperial Petroleum (IMPP.US)$ $Houston American Energy (HUSA.US)$ $Indonesia Energy (INDO.US)$ $BP PLC (BP.US)$ $Exxon Mobil (XOM.US)$
$Chevron (CVX.US)$ $Phillips 66 (PSX.US)$ $Valero Energy (VLO.US)$ $Devon Energy (DVN.US)$ $Occidental Petroleum (OXY.US)$ $W&T Offshore (WTI.US)$ $United States Oil Fund LP (USO.US)$ $United Sts Brent Oil Fd Lp Unit (BNO.US)$ $Imperial Petroleum (IMPP.US)$ $Houston American Energy (HUSA.US)$ $Indonesia Energy (INDO.US)$ $BP PLC (BP.US)$ $Exxon Mobil (XOM.US)$
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bullshyt : meaning?
ATRIPWMT bullshyt : If you went all in right now, you’d either be very rich or very poor depending on the direction you’re betting on.
SpyderCall OP bullshyt : spy should break out to the downside when it exits the diamond. That is what is supposed to happen
bullshyt SpyderCall OP : noted.
bullshyt ATRIPWMT : not a gambler bro. I'm a small investor. u don't believe in all in. I will buy in bit by bit when it dips.
Violets : exit bearish as well? on another note button said the FED is trying to cause capitulation? why would they do that
SpyderCall OP ATRIPWMT : true lol
SpyderCall OP Violets : their intention is not capitulation. want to slow down inflation which slows down growth which kills the markets. that is why the market is selling off because every investor knows that the FED is trying to kill growth and that will be bad for equities so they want to get ahead of the Curve and so their investment to buy back on the low. this could very well cause capitulation if everyone sells it the same time. and right now everything is so sensitive in the markets are so fragile that if we get some really bad earnings from some big names it might cause a capitulation event but right now I don't see one happening. maybe forget some really bad economic data I'm not really sure.
SpyderCall OP bullshyt : that's a good way to do it as a long term investor
solo invest : It really looks like it wants to break to the upside…
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