Diamond Follow Through

This pattern shows a follow-through pattern after the diamond pattern which is a combination of triangle and broadening pattern. The pattern consists of ten columns.

Diamond pattern shows volatility expansion followed by convergence. Follow-through to the diamond pattern offers an opportunity to trade the diamond pattern. It indicates the trend direction of the pattern and determines the risk or duration of reversal before breakout.

A Double Top Buy pattern immediately following a Diamond Pattern triggers a Bullish Diamond Follow-Through Pattern.

A Double bottom sell pattern immediately following a Diamond Pattern triggers a Bearish Diamond Follow-Through Pattern.

Prashant Shah explains this pattern in his book on P&F charts.

This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.