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A Continuation Diamond chart pattern forms when the price has broken upward out of a consolidation period, suggesting a continuation of the prior uptrend.
The chart pattern begins during a downtrend as prices create higher highs and lower lows in a broadening pattern.
Then the trading range gradually narrows after the highs peak and the lows start trending upward.
When the price breaks upward out of the diamond’s boundary lines, it marks the resumption of the prior uptrend.
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