This is a clear example of how a Geometrical formation, after its break (in this case clearly reversal) sets the pace of the trend. We needed a measured objective target for this and any short entries should be favored during the ride down.
Today was a clear example of this when price made a pullback towards the high of the day and a SHORT entry could/should be established in the direction of the main move. All trends were aligned (monthly/weekly/daily), therefore there were higher probabilities that this pair would try to fill its ADR south of the border. It did.
Both (break of diamond) and pullback were EXCELLENT trading ideas.
A textbook example of a diamond formation on the 60 min. chart at the top of the range. Its main diagonal pointing up suggested a reversal as it clearly happened.
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