Bearish Diamond chart pattern
A variation of the bearish diamond, also known as the diamond top, was described in the previous section.
Traders can view the pattern as a series of up-and-down price swings that resemble a head-and-shoulders pattern structure.
Specifically, the left shoulder and the head will join to form a trend line, while the head and the right shoulder will form a second trend line.
It completes the trend lines for the top of the bearish diamond formation.
Then, for the bottom part, we'll connect the swing lows inside the troughs, forming a V-shape.
In the case of a Bearish Diamond chart pattern, the stop loss should be placed at the previous high of the pattern.
The limitation for the target will be the previous Support level which was formed before by the price action.
