Chart patterns · Advanced

Diamond Top and Bottom Patterns

A 1-minute lesson from the MarketPro academy, one of 22 in chart patterns.

Last reviewed 15 September 2026 by the MarketPro research desk · Editorial policy

Short answer

A diamond pattern combines a broadening formation followed by a converging one, creating a shape that widens and then narrows again, resembling a diamond on the chart, and is generally treated as a reversal pattern. The first half of the pattern shows expanding price swings, similar to a broadening formation, while the second half shows those swings contracting, similar to a symmetrical triangle, with the whole shape typically appearing after an extended trend has become stretched.

The first half of the pattern shows expanding price swings, similar to a broadening formation, while the second half shows those swings contracting, similar to a symmetrical triangle, with the whole shape typically appearing after an extended trend has become stretched.

Finish this lesson in the MarketPro app

2 more sections of Diamond Top and Bottom Patterns, plus all 320 lessons, the quizzes that check each one landed, and the streak that keeps you coming back. All of it is free on any account, including a free one. There is no paywall inside the academy.

Scan with your phone camera to install MarketPro and open this lesson.

Download on theApp Store Get it onGoogle Play

Free account, no card. The academy has no paywall inside the app.

Not investment advice. Past performance is not indicative of future results.

Diamond top: Forms after an uptrend and is traditionally read as a potential bearish reversal signal once price breaks below the pattern's lower boundary.
Diamond bottom: The less common mirror image, forming after a downtrend and traditionally read as a potential bullish reversal once price breaks above the upper boundary.
Rarity: Because it requires both an expanding and a converging phase to form clearly, this pattern is considerably less common and harder to identify reliably than simpler reversal patterns.

Given its relative rarity and the subjectivity involved in spotting the transition between the two phases, the diamond pattern is generally considered an advanced tool best used alongside other confirming evidence rather than in isolation.

Lesson 17 of 22 in Chart patterns

PreviousBroadening Formations (Megaphone Pattern) NextThree Drives Pattern

Run the numbers while this is fresh

The arithmetic in this category has a free calculator on this site, no sign-up and nothing leaves your browser: Position size calculator, Profit & loss calculator.

Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed 15 September 2026. How we produce signals and content · About MarketPro

Trade · Learn · Earn

The whole academy is free in the app

All 320 lessons, 12 guided paths, quizzes and a daily streak. Free on every account, with vetted free signals alongside it.

Download on theApp Store Get it onGoogle Play

Not investment advice. Past performance is not indicative of future results.