Stock market diamond bottom

[Dodo]

The stock market experienced a deep dive over some weeks and reached 25-30rsi on weekly..

After the smart money buyer caught a wiff of that oppoortunity, the chart painted a bullish reversal Diamond Bottom pattern, as seen on chart. 

The pattern was successful on multiple retests and we are now beginning stages of the reward.

https://www.tradingview.com/chart/NAS100/Pje1mbn3-Nas100-Diamond-Bottom/

As a reference, solana had the same pattern at its bottom between 7 and 10$, and is now what 200, I dont want to look. 

https://www.tradingview.com/chart/SOLUSDT/vdCyXaDV-Solana-Diamond-Bottom-is-in/

So diamond bottom, by the book, means buy and hold for the long term. This is it, this is where the bulls have to fight on every dip. 😤 

Good luck all with your investments and trades. Remember, No risk, no reward. 

 

[Leo Gura]

Bottom?

Market is likely to go much lower next quarter as Trump's chaos impacts earnings.

The effects of Trump have not impacted earnings yet. That rain-cloud is on the horizon.

Don't be a greedy sucker. Protect your capital.

Edited May 7 by Leo Gura

[Jodistrict]

I have been following the same trader for over 10 years.  His first rule is don’t look at the news.  The markets are driven by big money and they have their own agenda.  The media reporters look at the daily fluctuation and then attribute it to the day’s news story even though there is zero proof of causality.  Also, using a single pattern is unreliable and backtesting doesn’t take enough of the context into account. 

[Dodo]

On 07/05/2025 at 5:53 PM, Jodistrict said:

I have been following the same trader for over 10 years.  His first rule is don’t look at the news.  The markets are driven by big money and they have their own agenda.  The media reporters look at the daily fluctuation and then attribute it to the day’s news story even though there is zero proof of causality.  Also, using a single pattern is unreliable and backtesting doesn’t take enough of the context into account. 

Which trader, because like 10-13 yrs ago a pro trader told me the same, to only look at chart and never at news! 

Chart is telling me bottom and I am taking the risk. Capital at risk, capital at reward. Hehe

When the news were at their worst was the 16k bottom, best buy (which I took while it was dropping on my magic line at 16600) , how do we ignore that, now at 20k.. btc has exact same bottom btw, its very sus! 

Ofcourse there is risk, but SL below diamond, risk management, and chart is saying absolute bottom, never to test the diamond bottom again. Should be seeing 23k 24k in nsdq index. 

Edited May 8 by Dodo

[Dodo]

On 07/05/2025 at 5:14 PM, Leo Gura said:

Bottom?

Market is likely to go much lower next quarter as Trump's chaos impacts earnings.

The effects of Trump have not impacted earnings yet. That rain-cloud is on the horizon.

Don't be a greedy sucker. Protect your capital.

When everyone's fearful, the greedy are the sellers, they dont want to lose, don't want to meet the big red candle with a buy, due to fear of loss, they might even short, to gain from further dips...

The chart gave me a buy signal low which played out perfectly, so I have no reason to doubt it. I dont know how and when, Im just very bullish right now. 

Capital is at risk both in a long and in a short.

Edited May 8 by Dodo

[FourCrossedWands]

There was some old experienced investor saying that market will crash after the tarrifs announcement, but rebound after a few days. However, a big recession will come in a couple of months. The first part he predicted 100% correct. Let's see what will happen in a couple of months. But, summer months are usually weaker for the stock market in general.

[Dodo]

9 hours ago, FourCrossedWands said:

There was some old experienced investor saying that market will crash after the tarrifs announcement, but rebound after a few days. However, a big recession will come in a couple of months. The first part he predicted 100% correct. Let's see what will happen in a couple of months. But, summer months are usually weaker for the stock market in general.

Rebound... not only it rebounded it reversed the trend

 Pshhh dont listen to some random investors, listen to me an actualizer with 13 yrs of experience in charting.

 

Now price is 20100 you still have until magic blue line at 21000 to secure a low risk high reward long. At 21000, when this line gets passed, its then that the bull *begins* 😤 it might shake before it passes it, thats why you want to buy before, so you can watch those tests in profit, not in loss.

Edited May 9 by Dodo

[Dodo]

Not only stocks, but crypto too is flipped bullish. I believe Gold might be selling off into them.

[FourCrossedWands]

There is no point speculating what will go up and what will go down in the short term. In the end, everything just goes up if you zoom out.

We live in an endless bubble economy, where even the smallest stock market retracement means quantitative easing and more money printing from the FED.

Just buy whatever you like and don't even care about the price. Fundamentals are non existent in 2025.

[Leo Gura]

39 minutes ago, FourCrossedWands said:

Just buy whatever you like and don't even care about the price. Fundamentals are non existent in 2025.

Exactly what leads to a crash.

[FourCrossedWands]

8 minutes ago, Leo Gura said:

Exactly what leads to a crash.

There should have been a crash about 10 years ago. Another big crash should have been during covid. And now, in 2025, there should have definitely be a big crash with what's happening. However none of them happened. This economy is not real anymore.

[Dodo]

Crashes are for buying, you see low rsi, it means the sellers are exuberant and winning, they sell any price in panic or greed to win from more dump. Thats when smart money gets filled on their sell pressure LOW. (buy low is not easy)

It depends on your leverage. The game is different if you are 1x and 100x. On 1x its right you can just buy any price, if you are happy with the amount of units you got, you only lose at 0. 

If you are on leverage you have to play smarter and catch good spots where your trade wont get stopped out before it keeps pushing. 

So its not that easy to buy any price, many buy extreme leverage at tops and small retrace takes them they get angry and start making mistakes.

In this market you can win both ways. The trend on all time chart is bullish. There are always dips, but the trend is bullish, thats how you know you need to be a buyer on lows rather than a seller on highs. 

 

My 2 cents. 

Edited May 12 by Dodo

[Dodo]

54 minutes ago, Leo Gura said:

Exactly what leads to a crash.

But "crashes" happen to the upside too, if the chart says bullish and you can get in deep profit on a long you can then set the stop loss at break even and in event of said crash u dont lose. So you either win or dont lose... 

We are approaching the 21000 resistance i mentioned earlier, today from 20050 to 20800 or so, above 21000 begins a brand new bull run where 21000 will be the low... so bring it on, bears! I expect some shake before we push 21000 to keep the sellers interested.

Edited May 12 by Dodo

[Dodo]

Notice how it happened precisely as anticipated, any long from lower is basically risk free sl at break-even, either win or not lose. 

If it will go to 24k i dont see this as a bad entry either, after breakout and re-test.

This here is the aforementioned bull run where 21k is the low.

Edited May 19 by Dodo