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How to Adam & Eve PatternEver wondered about Adam and Eve in trading? It's a straightforward and powerful pattern. Hello dear traders! If you like my graphics, please use Like button 💙💛 Picture Adam as the first market peak or dip, and Eve as the second, forming a U-shape. This pattern highlights a robust price level, suggesting a potential market shift. How to Utilize It? In a downtrend, spot Adam and Eve as double bottoms. When Eve follows Adam, indicating a strong support level, consider entering trades. Trade when the price breaks above resistance line, with a stop loss set at the neckline level. Pay attention to trading volumes. They confirm buying or selling strength, offering a clear signal for a trend reversal. Finding Your Target: Identify the pattern's height from the neckline to the peak of Eve. Project this distance downward from the breakout point for a bullish pattern or upward for a bearish one. This gives you a potential target for your trade. Here is an example of Adam & Eve pattern play on Bitcoin chart: Master the Adam and Eve pattern to make confident trading decisions. It's an intuitive way to identify market change in trend and make strategic moves. 📈✨
INDEX:BTCUSDEducation
by ArShevelev
9
📊 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. 👤 @QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
Double Tops & Bottoms - Advanced AnalysisDouble tops/bottoms are relatively frequent and easy formations to identify and use. In this post, we provide a description of each pattern, implications, respective measure rule, as well as the variations described by Bulkowski. We also review the literature on these patterns in order to find various observations as well as a theoretical explanation of their occurrence. 1. Double Tops Double tops are a bearish pattern commonly found in uptrends and characterized by two consecutive peaks located at a similar level, separated by a trough. Bulkowski suggests that the absolute relative distance between the two peaks should be within 6%. The first peak is followed by a 10/20% decline. The location of the trough in the formation forms the "confirmation" level. The price breaking this level signifies the completion of the pattern, and a short position should be opened. In order to avoid fake breakouts, Bulkowski suggests a 5% decline below the confirmation level. Volume is generally declining during the formation of a double top. The time separating two peaks is an important factor when it comes to determining the validity of a potential double top. This separation should be in accordance with the duration of the uptrend before the peaks. Peaks that are too close to each other are not indicative of a double top, while an excessive time separation might indicate that the prior uptrend is outdated. Double top on OIA daily. 2. Double Bottoms Double bottoms are a bullish pattern commonly found in downtrends and characterized by two consecutive troughs located at a similar level, separated by a peak. Bulkowski suggests that the absolute relative distance between the two troughs should be within 6%. The first trough is followed by a 10/20% rise. The location of the peak in the formation forms the "confirmation" level, the price breaking this level signifies the completion of the pattern, and a long position should be opened. In order to avoid fake breakouts, Bulkowski suggests a 5% decline above the confirmation level. Volume is generally declining during the formation of a double bottom. Like with double tops, the time separation between two troughs should be in accordance with the duration of the downtrend prior to the troughs. The observations on the matter previously described for double tops also apply to double bottoms. Double bottom on CFFN daily. 3. Measure Rule The measure rule allows for the determination of the amplitude for the expected price move after a breakout of the confirmation line. This also allows for the trader to decide the location of take-profits/stop-losses when trading double top/double bottom patterns. For double tops, the take profit is determined from the height given by subtracting the formation highest peak with the trough. The height is then subtracted from the formation trough. For double bottoms, the take profit is determined from the height given by subtracting the formation peak with the lowest trough. The height is then added to the formation peak. Another rule suggests an expected price movement after breakout equal to 73% of the distance between the formation highest peak and the formation lowest low. 4. Eve/Adam Variations Bulkowski classifies double tops and double bottoms into four distinct types: - Adam & Adam - Adam & Eve - Eve & Adam - Eve & Eve The term Adam and Eve is given to peaks/troughs depending on their width, with the term Adam given to narrow (V-shaped) peaks/troughs and the term Eve given to wider (U-shaped) peaks/troughs. There aren't large scale studies quantifying the accuracy of each of these variations, Bulkowski ranks each one of them as follows (lower is better) (1): For double tops: - Adam & Adam: 19 out of 36 - Adam & Eve: 10 out of 36 - Eve & Adam: 16 out of 36 - Eve & Eve: 12 out of 36 For double bottoms: - Adam & Adam: 26 out of 39 - Adam & Eve: 17 out of 39 - Eve & Adam: 20 out of 39 - Eve & Eve: 5 out of 39 Note that such classification is not always used by traders. Example of Adam & Eve double top on LEO daily. 5. Observations The big M and big W patterned described by Bulkowski are variations of the double top/bottoms. The analysis conducted by Caginalp and Balevonich shows that double formations can be the consequence of identical equilibrium prices with slightly differing undervaluation (2). 6. References (1) Bulkowski, T. N. (2021). Encyclopedia of chart patterns. John Wiley & Sons. (2) Caginalp, G., & Balevonich, D. (2003). A Theoretical Foundation for Technical Analysis. Capital Markets: Market Microstructure eJournal.
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BITSTAMP:BTCUSDEducation
by LuxAlgo
29
CADJPY Adam and Eve 👫Adam is a term that describes how the bottom looks, in this case, a narrow, pointed bottom, perhaps with a one-day downward spike. Eve bottoms are more rounded looking and wider. If they have spikes, they tend to be more numerous and shorter. Many times the difference between Adam and Eve is the width of each over their entire height. Adam bottoms tend to remain narrow but Eve bottoms widen over their height. When trying to decide which is which, ask yourself if the two bottoms appear different or similar. With Adam & Eve, the two should look different (the first narrow and the second wide).
Education
by InkyGrip
BTC Adam & Eve double bottom Hello traders, investors, bears & bulls and all you newcomers Today I would like to share with you Educational TA. The chart shows possible Adam & Eve doubble bottom pattern forming as title says The Adam & Eve double bottom is a chart pattern that performs best in a bear market. Double bottom pattern which occurs when price drops to a low and forms a valley, rises, and then forms a second valley near or at the same price as the first one. The shape and average price rise action of the double bottom can vary from pattern to pattern. Adam bottoms are narrow, often one-day price spikes. Eve bottoms are wider and more rounded looking. Eve bottoms may also contain price spikes, but they tend to be shorter and more numerous. more in the TA Hope you find this info helpfull :)
BITFINEX:BTCUSDEducation
by Anoinvest
4