| | | | The Results Snapshot shows the important results of diamond tops and bottoms.
In appearance, the only difference between the two diamond patterns is
the price trend leading to the formation. For diamond tops, the prior price
trend is upward, whereas diamond bottoms have price trends that lead down to
the formation.
The performance of the two types is similar. Both act as reversals of die
prevailing price trend with a volume trend that diminishes over time. Volume
on the day of the breakout is also high.
The failure rate for tops, at 25%, is more than double the rate for bottoms.
I consider failure rates above 20% to be alarming, so you might consider
tops unreliable.
The average decline (21%) and rise (35%) is about what you would expect
for reversals, with bottoms a bit shy of die usual 40% rise for bullish formations.
However, the most likely decline for tops is near the average, suggesting
that there are few large declines to distort the average. Diamond bottoms, with
a likely rise of just 15%, are well away from the 35% average gain. This suggests
there are a high number of formations with smaller gains that balance a
few larger ones.
这是从Encyclopedia of Chart Patterns上粘贴过来的,只可惜认识的词比不认识的多,希望有高人能翻过来。。 | | | | |
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