What is a Diamond Bottom?
Diamond Bottom Definition:
In Technical Analysis, a diamond bottom is a bullish reversal chart pattern seen at the bottom of a downtrend. A diamond is formed when the price starts to widen then narrows. An upside breakout usually occurs when the price moves above the descending resistance at the right side of the diamond. In general, the price moves towards a target that is about the height of the diamond from the point of breakdown.