CHARTING
Madam, I'm Adam
Eve & Adam Double Bottoms
by Thomas Bulkowski
If you read this author's first two articles about the Adam and Eve combinations of double bottoms, the Eve & Adam combination should be a snap. It combines elements from the Eve & Eve and Adam & Adam double bottom combinations, with performance that nestles comfortably between the two.
If the four varieties of Adam and Eve combinations, the Eve & Adam pattern is the rarest. Just finding good examples for this article proved challenging. When attempting to distinguish between the double bottom varieties, compare each bottom with its opposite. If both bottoms appear similar, the pattern is an Adam & Adam or Eve & Eve double bottom. If they appear different, then they are either Eve & Adam or Adam & Eve bottoms.
Figure 1: EVE & ADAM DOUBLE BOTTOM. The two bottoms should appear different from each other. Eve is more rounded, perhaps flatter, and wider. Adam is V-shaped, and narrow. Volume is heavier on the right bottom, but that happens only 52% of the time.
Figure 1 displays an Eve & Adam double bottom with an Eve bottom that is wider than the Adam bottom, but not by much. Eve appears flatter, while Adam is more V-shaped. Normally, I like to see a wide Eve bottom, but good examples are hard to find.
One interesting identification glitch of the Eve & Adam combination: Volume is heavier on the right bottom than the left, but only 52% of the time. In Figure 1, for example, you see heavier volume on the right bottom. For the other Adam and Eve combinations, you'll usually see volume heavier on the left bottom. However, do not be concerned if a double bottom has an abnormal volume pattern.
...Continued in the January 2003 issue of Technical Analysis of STOCKS & COMMODITIES
Excerpted from an article originally published in the January 2003 issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights reserved. © Copyright 2002, Technical Analysis, Inc.