As of 08/20/2019
  Indus: 25,962 -173.35 -0.7%  
  Trans: 10,006 -75.35 -0.7%  
  Utils: 834 -1.95 -0.2%  
  Nasdaq: 7,949 -54.25 -0.7%  
  S&P 500: 2,901 -23.14 -0.8%  
YTD
 +11.3%  
 +9.1%  
 +17.0%  
 +19.8%  
 +15.7%  
  Targets    Overview: 08/15/2019  
  Up arrow27,200 or 24,900 by 09/01/2019
  Up arrow10,700 or 9,550 by 09/01/2019
  Up arrow850 or 790 by 09/01/2019
  Up arrow8,200 or 7,400 by 09/01/2019
  Up arrow3,000 or 2,750 by 09/01/2019
As of 08/20/2019
  Indus: 25,962 -173.35 -0.7%  
  Trans: 10,006 -75.35 -0.7%  
  Utils: 834 -1.95 -0.2%  
  Nasdaq: 7,949 -54.25 -0.7%  
  S&P 500: 2,901 -23.14 -0.8%  
YTD
 +11.3%  
 +9.1%  
 +17.0%  
 +19.8%  
 +15.7%  
  Targets    Overview: 08/15/2019  
  Up arrow27,200 or 24,900 by 09/01/2019
  Up arrow10,700 or 9,550 by 09/01/2019
  Up arrow850 or 790 by 09/01/2019
  Up arrow8,200 or 7,400 by 09/01/2019
  Up arrow3,000 or 2,750 by 09/01/2019

Bulkowski's Diamond Bottoms Quiz

 

Released 5/24/2019.

Diamond Bottoms: Quiz

Below is a slider quiz to test your ability to identify diamond bottoms and trade them. Captions appear below the pictures in red for guidance, so be sure to scroll down far enough to read them.

 

1 / 8
chart pattern
This is one of the prettiest diamond bottoms I've seen. Price forms a broadening pattern in the first half followed by a narrowing one in the second half. Volume trends downward 67% of the time (A). Notice that price touches the trendlines on each side several times, but that's rare. Rare, too, is the diamond shape. You'll often see the top pushed to one side or the other. The downward price trend leading to the start of this diamond makes it a bottom and not a top. Ignore the brief drop (B) a week or so before the pattern begins.
2 / 8
chart pattern
Find as many diamond bottoms as you can. For help, click here.
3 / 8
chart pattern
You should not have had too much trouble finding this one. It's shaped well, too.
4 / 8
chart pattern
Find as many diamonds as you can along with a double top and a triple top. For help, click the associated link.
5 / 8
chart pattern
The diamond bottom is at C. Yes, it looks like an elephant stepped on it, but that's okay. Another diamond is in green, but it's a diamond top and not a bottom. The triple top is at DEF. The double top is at GH. Notice that the launch price is at A and the return trip sees price dropped back to B, which is just above A. You'll see that type of behavior often enough (and I think I've remarked about it in these quizzes before).
6 / 8
chart pattern
Where's the diamond bottom in this picture? Can you find more than one? And find a symmetrical triangle, too.
7 / 8
chart pattern
The diamond is the, well, diamond shape at A. The other red lines highlight the symmetrical triangle. Here's the trading question. The breakout is at A and it's upward. But where will price finish moving? Higher to 78, 80 or 85, or will it throwback to drop below the pattern and fall to 70, 65, or 61? Make your prediction now.
8 / 8
chart pattern
The stock continued higher to 78, so that was the correct guess. After that, price dropped more than 20%, meaning 78 was the 'ultimate high' (the best you could make if trading it perfectly). Notice that this (the AB move) is similar to the launch price scenario of chart 5. In this case, the launch price is A and the stock climbs to B before reversing with a reversal pattern nesting comfortably in between those two peaks.

See Also

 
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