How does a diamond pattern get so complex?

5 בספט׳ 2024

on the left hand side we see a series of days UP, 5 waves up and an ABC down, day after day, this is how the market moves up.

We had 5 waves up, from the diamond bottom, (red 5). to a 4th wave down, that turned into 5 waves down, and on the ABC up, it reversed again and fell, now reversing off the wave 3 down, close to the lower edge of the diamond.

This all creates the extremely complex diamond top formation.

5 בספט׳ 2024

הערה

The market is going up at the time of this post, but a diamond top formation is long term and bearish. in 2022 the NQ went down 7000 points from one.