Wider, then narrower, at a high

What the Lesson Covers

1. 0:00A top that first gets louder and then goes quiet. Broadening, then contracting, in that order.
2. 0:06The shape. Higher highs and lower lows widening the range at a high, then the swings shrinking back down. Four boundaries, and a diamond outline.
3. 0:17Why it forms. Widening swings are agreement breaking down at a high. The contraction that follows is that argument being settled in a narrow range.
4. 0:27The levels that matter. The rising lower line, the last lower high, the widest height of the structure, and the very top of the broadening phase.
5. 0:37Where it completes. A close below the rising lower line completes it. Above the last lower high the narrowing phase, and the pattern with it, is over.
6. 0:48How often it follows through. Sixty to sixty-five, the lowest band here. Genuine diamonds are rare and the published samples are tiny and picked afterwards.
7. 0:57The same shape failing. Here the coil resolves upward instead, clears the last lower high, and the advance the diamond was meant to reverse simply continues.
8. 1:08The tells. Phases that are not clearly separate, volume that never falls through the contraction, or a break that closes back inside within days.
9. 1:18Draw the broadening half first. If it needs arguing for, stop there.