CHARTING
Enter The Garden Of Technical Knowledge
Adam & Eve Double Bottoms
by Thomas Bulkowski
Here's the final part of a four-part series discussing double bottoms.
If you read my article in the January 2003 STOCKS & COMMODITIES about the Eve & Adam double bottom, you can guess that an Adam & Eve double bottom (AEDB) is its mirror image. If you think I saved the best for last, though, you would be wrong, as an AEDB's performance falls between the best-performing Eve & Eve pattern and the worst-performing Adam & Adam pattern.
IDENTIFICATION
Figure 1 shows a good example of an Adam & Eve double bottom. The
Adam bottom appears narrow, pointed, with a downward price plunge. The
Eve bottom is more rounded, wider, but somewhat flat on the bottom. The
two bottoms appear markedly different from each other. That's key. If the
bottoms look similar, then you have either an Adam & Adam pattern or,
more likely, an Eve & Eve double bottom (Eve & Eve appears 50%
more often than its closest competitor, the Eve & Adam).
Figure 1: ADAM & EVE DOUBLE BOTTOM. The Adam bottom appears narrow, whereas Eve is wider and more rounded.
...Continued in the February 2003 issue of Technical Analysis
of STOCKS & COMMODITIES
Excerpted from an article originally published in the February 2003 issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights reserved. © Copyright 2003, Technical Analysis, Inc.