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Here we have a “diamond” consolidation pattern which, given its placement, is neutral here. So, how is it helpful? By giving us short-term precise levels to watch if the pattern holds true and does not morph into something else. On the 5-minute chart of the SPY below, watch $116.65 up top for a breakout and $115.50 down below for a breakdown.
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Thanks, Chess. Much appreciated.
no sweat
Chess, why wouldn’t you watch the boundaries of the diamond, i.e. breakdown below those moving averages?
yes, that too for sure–depends on your timeframe for trading