Idea Based on the Diamond Pattern

A diamond pattern has formed earlier in the chart, followed by a breakout of the upper boundary. If the breakout is confirmed by a candlestick body close above the diamond and then retested, a limit buy order can be placed after the retest. This sets up a primary long position with the expectation of reaching the take profit (TP) in the upward direction.

However, if the market fails to continue upwards and instead reverses, a secondary strategy comes into play. In this case, a limit buy order is placed near the lower boundary of the diamond, aiming for a recovery back to the upper boundary, which becomes the TP level. This fallback approach is designed to exit the market with minimal or no loss, using the diamond’s structure as a defined risk and recovery zone.

This dual approach allows for:

A primary breakout trade setup.

A backup recovery strategy if the breakout fails.

The visual projection shows both scenarios:

Successful breakout continuation toward higher highs.

False breakout and retracement down to the lower boundary, followed by a rebound back toward the original upper boundary.