The Continuation Diamond pattern forms when the price has broken upward out of a consolidation period. There are two ways to look for continuation Diamonds. If you see the Diamond as a pattern, then you are keeping an eye out for a breakout. If you see it as a signal, then you are waiting for the breakout to happen before you take your trade. Both methods have their pros and cons and this blog will look at both.A diamond is one of the most popular chart patterns used in technical analysis. The diamond is a continuation pattern. A diamond begins with an upward trend followed by a period of consolidation. Then, after the consolidation, the price breaks out and continues in the prior trend. The diamond is a bullish pattern and can be seen in any time frame. The diamond is a very reliable pattern and often appears at significant turning points.