Trading News

See all posts (71)
Mastering Trading Strategies: Diamond and Butterfly Patterns, FTMO Challenge, and Trading in the Zone Boost Your Trading Success with FTMO Challenge, Forex Funds Management, and Trading in the Zone Diamond Pattern, Butterfly Pattern, Bullish Harami and other technical analysis tools Experts Weigh In on Cryptocurrencies: Here’s What They Have to Say Comparing 401(k)s and IRAs: Which Is Right for You? Private Equity and Startup Investing Are We Experiencing the Dot-Com Bubble 2.0? Tumultuous Equities in 2022: Here’s What Experts Are Saying Market Uncertainty and the Current (Potentially) Recessionary Environment: Where Do We Head From Here? Cryptocurrency Investing Insights: The Importance of Diversification What is margin in Forex: Explaining the term in plain English Basic principles of a successful trading day Facebook's cryptocurrency project is on the brink of collapse Specifics of trading with the Keltner Channel indicator TOP recommendations for effective use of Parabolic SAR Bitcoin renews all-time high but prospects remain bleak Cryptocurrency, «Robinhood», SPAC: New investment hybrids of the Covid-19 era What is slippage in Forex and how to avoid it? What is the NFP in Forex (Non-Farm Payrolls)? BTC.TOP believes that bitcoin will reach $400,000 The best currency pairs to trade Most common mistakes in algorithmic trading Terms and conditions of employment with FTMO The coronavirus snaps an 11-year growth streak in financial markets Bitcoin may fall to $10,000, but it is too early to panic The founders of the Africrypt crypto exchange disappeared along with their users' bitcoins What is a Buy Limit order in Forex and how to use it? India may introduce a law banning cryptocurrency trading What is scalping in Forex: all the pros and cons Elon Musk's unexpected statement crashed the crypto market Who are market makers and market users? How to pass the FTMO Challenge? Japan has several reasons to issue a national cryptocurrency FTMO is the best Proprietary Trading company The Linear Regression indicator: advantages, characteristics, recommendations The FTMO Challenge: TOP 5 tips Huge electricity costs threaten the cryptocurrency industry Benefits of working for Proprietary Trading Having no trading plan is the biggest mistake of novice traders What is a sideways trend in Forex, and how to approach it? What is capital in Forex: the size and usage Successful traders always limit their losses The McClellan Oscillator: All a novice trader needs to know Top 10 tips for turning a loser into a successful trader Pros and cons of using TOP 3 volatility indicators Aspects of Forex trading at night Top 5 unforgivable intraday trading mistakes How to trade the Diamond formation About a margin in Forex in simple terms How to use the RSI indicator
Diamond Pattern, Butterfly Pattern, Bullish Harami and other technical analysis tools
Diamond Pattern, Butterfly Pattern, Bullish Harami and other technical analysis tools


In this article, we will cover a range of chart patterns commonly associated with “technical analysis.” Notably, traders and investors can utilize such patterns to enter or exit positions. Nevertheless, it is important to note that these patterns are not always accurate; as a result, they should be used in conjunction with fundamental analysis and other investment approaches to develop a more comprehensive picture of the trade being analyzed.

Diamond Pattern

The diamond pattern is a unique chart formation that is applicable to charts of various markets, including stocks, forex, cryptocurrency, and commodities. It is characterized by a tight consolidation pattern, with price action forming a diamond. This pattern has the potential to be bullish or bearish; however, this is dependent on the particular breakout direction.



Butterfly Pattern

The butterfly pattern is another chart formation that is widely recognized as a reversal pattern. The butterfly pattern is formed by four distinct points, and it is identified by a specific Fibonacci ratio between the different swings of the pattern.

Bullish Harami

Similar to the aforementioned butterfly pattern, a bullish harami is considered to be a reversal pattern. It is formed by two candles, where the first is a long bullish candle, and the second is a small candle completely engulfed by the first. This pattern indicates a potential trend reversal from bearish to bullish.

Bearish Harami

Unlike a bullish harami, a bearish harami can indicate a reversal in a downtrend. It is formed when a small bullish candle is found within the range of a large bearish candle. This can signal that the bears are losing control and that bulls may be taking over.

Inside Bar

An inside bar can indicate indecision or a potential reversal in the market. It is formed when the current day's candle is within the range of the previous day's candle. This can be a sign that traders are uncertain regarding the market direction. It can also signal a potential reversal.

Pin Bar

A pin bar can signal a potential market reversal. It is formed when the current day's candle has a small body and long wick on one side. To learn more about these descriptive terms, take a look at a pin bar graphic. You will notice the body of a candle, along with a line (i.e., a “wick”) protruding upwards, downwards, or in both directions. The long wick can indicate a rejection of the current market trend.

W Pattern Trading

As a technical analysis strategy, W pattern trading searches for a specific chart pattern to signal a potential market reversal. This pattern is formed when the market makes two consecutive lows, followed by a higher low, before retracing to the original low. This pattern can indicate that the bears have lost control and that the bulls may soon take over. Traders can use this pattern to enter long positions or exit short positions.


Still have any questions,
Get in touch with our expert
Download Our App

Our mobile application delivers the best trading experience on the go.

Get the free app today and enjoy responsive automated forex trading on your mobile phone

Get it on Google Play Get it on App Store
Start Investing
With Algofxpro
This option is not available right now.