Diamond Bottom
A diamond bottom is a chart pattern in technical analysis signaling a potential reversal to the upside after a downtrend, formed when price action creates a diamond-shaped consolidation by converging trendlines connecting swing highs and swing lows.
Example: A stock in a downtrend forms a diamond bottom; after the pattern completes, the price breaks above the upper boundary with higher volume, suggesting a potential reversal to the upside.
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