Sharing Knowledge in Smallcaps

[rayrohn]

from Edwards and Magee

Diamond Reversal Formation (Chapter 10)

Definition: A broadening formation which, after two or three rallies and declines, suddenly reverts into a regular (usually symmetrical) triangle….also could be described as a complex head-and-shoulders with a V-shaped neckline (but with volume more typical of a broadening formation).
Fairly conspicuous and easily detected, but uncommon, and especially rare at bottom reversals. Appears mostly at major tops and high-volume tops preceding extensive intermediate reactions.
Use caution in making diamonds out of every head-and-shoulders with a slightly bent neckline (tempting to do, since a V-shaped neckline can give an earlier and more profitable breakout signal), unless the second half of the formation has clean-cut converging boundary lines and activity tends to diminish as in a triangle.
Confirmation: Same as h&s and triangle.
Prediction: Price moves at least as far from breakout point as greatest distance from top (head) to bottom (V in neckline), but keep in mind that a reversal formation must have something to reverse.

http://www.ttrader.com/dirttime.php#diamond

which ever way it break it should move about 2 points..
{I think lol}