📊 The Adam & Eve Chart pattern
📍 What is the Adam and Eve Chart Pattern?
In essence, Adam and Eve is a variation of double top and double bottom patterns and is only slightly different from the traditional double bottoms/tops. The pattern is marked by the first bottom or top, the Adam, then the price moves up or down and creates another U-shaped where we can see Eve.
📍 Adam and Eve Double Bottom
Adam and Eve double bottoms are formed in a downtrend and create two bottoms before the price moves upward – the first bottom is a shape of a V (Adam) a peak at the support line while the second bottom is in a shape of a U (Eve). Simply put, the Adam and Eve chart patterns indicate a strong price level that is unlikely to be broken, and hence, a shift in market sentiment.
Trading with the Adam and Eve pattern is super simple. All you have to do is to identify the pattern correctly and know the proper levels of when and where to enter and exit a trade.
📍 Key Takeaways
The Adam and Eve pattern is a variation of the double top and bottom chart pattern that signals the start of a new trend.
The bullish version of the pattern features a V-shaped first bottom called Adam, followed by a U-shaped consolidation phase forming Eve. The same applies to the bearish version.
The breakout trading strategy is recommended for trading with the pattern. Enter a trade when the price breaks above the resistance line or below the support line, with a stop loss at the neckline level.
Volume plays a crucial role in the Adam and Eve pattern as it confirms buying or selling pressure, providing a strong signal for a trend reversal.
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In essence, Adam and Eve is a variation of double top and double bottom patterns and is only slightly different from the traditional double bottoms/tops. The pattern is marked by the first bottom or top, the Adam, then the price moves up or down and creates another U-shaped where we can see Eve.
📍 Adam and Eve Double Bottom
Adam and Eve double bottoms are formed in a downtrend and create two bottoms before the price moves upward – the first bottom is a shape of a V (Adam) a peak at the support line while the second bottom is in a shape of a U (Eve). Simply put, the Adam and Eve chart patterns indicate a strong price level that is unlikely to be broken, and hence, a shift in market sentiment.
Trading with the Adam and Eve pattern is super simple. All you have to do is to identify the pattern correctly and know the proper levels of when and where to enter and exit a trade.
📍 Key Takeaways
The Adam and Eve pattern is a variation of the double top and bottom chart pattern that signals the start of a new trend.
The bullish version of the pattern features a V-shaped first bottom called Adam, followed by a U-shaped consolidation phase forming Eve. The same applies to the bearish version.
The breakout trading strategy is recommended for trading with the pattern. Enter a trade when the price breaks above the resistance line or below the support line, with a stop loss at the neckline level.
Volume plays a crucial role in the Adam and Eve pattern as it confirms buying or selling pressure, providing a strong signal for a trend reversal.
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