As of 10/11/2019
  Indus: 26,817 +319.92 +1.2%  
  Trans: 10,292 +224.65 +2.2%  
  Utils: 867 -5.54 -0.6%  
  Nasdaq: 8,057 +106.26 +1.3%  
  S&P 500: 2,970 +32.14 +1.1%  
YTD
 +15.0%  
 +12.2%  
 +21.6%  
 +21.4%  
 +18.5%  
  Targets    Overview: 09/30/2019  
  Up arrow27,600 or 25,600 by 10/15/2019
  Up arrow11,100 or 9,700 by 10/15/2019
  Up arrow900 or 850 by 10/15/2019
  Up arrow8,300 or 7,700 by 10/15/2019
  Down arrow2,825 or 3,050 by 10/15/2019
As of 10/11/2019
  Indus: 26,817 +319.92 +1.2%  
  Trans: 10,292 +224.65 +2.2%  
  Utils: 867 -5.54 -0.6%  
  Nasdaq: 8,057 +106.26 +1.3%  
  S&P 500: 2,970 +32.14 +1.1%  
YTD
 +15.0%  
 +12.2%  
 +21.6%  
 +21.4%  
 +18.5%  
  Targets    Overview: 09/30/2019  
  Up arrow27,600 or 25,600 by 10/15/2019
  Up arrow11,100 or 9,700 by 10/15/2019
  Up arrow900 or 850 by 10/15/2019
  Up arrow8,300 or 7,700 by 10/15/2019
  Down arrow2,825 or 3,050 by 10/15/2019

Bulkowski's Eve & Adam Double Bottom

 

For more information on this pattern, read Encyclopedia of Chart Patterns Second EditionEncyclopedia of Chart Patterns 2nd Edition book., pictured on the right, pages 244 to 258.

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-- Tom Bulkowski

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Statistics updated on 10/17/2018. Rank updated on 7/26/19.

Important Results
Identification Guidelines
Trading Tips
Example
Other Examples
See Also

 

Eve & Adam double bottom chart pattern

Eve & Adam Double Bottom

 Score your chart pattern for performance. 

Eve & Adam Double Bottoms: Important Bull Market Results

Overall performance rank (1 is best): 37 out of 56
Break even failure rate: 17%
Average rise: 41%
Throwback rate: 68%
Percentage meeting price target: 71%

The above numbers are based on 622 perfect trades. See the glossary for definitions.

Eve & Adam Double Bottoms: Identification Guidelines

Consult the associated figure on the right.

CharacteristicDiscussion Double bottom setup
The Double Bottom Setup
Price trendDownward leading to the pattern.
ShapeTwo distinct valleys that look different. Eve bottoms appear first and are wider and more rounded looking. Adam bottoms appear after Eve and are narrow, V-shaped, sometimes with one long price spike. Spikes that appear tend to be more numerous and shorter on Eve bottoms.
PeakThe rise between bottoms should measure at least 10%, but allow variations.
Bottom priceThe price variation between bottoms is small, usually between 0% and 4%. The two valleys should appear to bottom near the same price.
SeparationThe twin valleys are several weeks apart with most falling in the 2 to 7 week range (the average is 43 days).
ConfirmationThe double bottom confirms as a true double bottom once price closes above the peak between the two valleys. That is the top red line on the figure to the right.
VolumeHigher on the left bottom .

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Eve & Adam Double Bottoms: Trading Tips

A trading setup related to double bottoms and throwbacks is located here.

Consult the associated figures on the right.

Trading TacticExplanation
Eve and Adam double bottom measure rule
The Measure Rule
Eve and Adam double bottom chart pattern with handle
Handle
Flat base followed by any chart pattern
Flat Base
Measure ruleCompute the height from the highest peak (A) to the lowest valley (B) in the pattern then multiply it by the above 'percentage meeting price target.' Add the result to the breakout price (the highest peak in the pattern, A) to get the target, C.
Price reversalPrice must have something to reverse, so if the decline leading to the double bottom is small, expect a small rise.
Big WLook for a double bottom with a tall left side, one with a steep decline and few or no price consolidations along the way. Expect price to return to near where the downtrend began.
ConfirmationWait for confirmation: price to close above the peak between the valleys. If you don't wait, there's a 64% chance that price will continue lower without confirming the double bottom.
HandleSee the figure to the right. Sometimes price will confirm the double bottom then waffle up and down, forming a handle. When price breaks out of this region, it often moves up in a strong trend.
Flat baseExpect a large rise if the double bottom appears after a long, flat base. Use the weekly scale to find the flat base -- the double bottom will look like a pothole in a road.
TrendsA short-term decline leading to the double bottom results in the best post breakout performance.
Yearly lowDouble bottoms within a third of the yearly low perform best.
Volume trendA downward volume trend suggests good post breakout performance.
ThrowbacksThrowbacks hurt post breakout performance

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Eve & Adam Double Bottoms: Example

Eve & Adam double bottom chart pattern example

The above figure shows an example of an Eve & Adam double bottom chart pattern. The Eve bottom has three days at about the same price level. Adam bottom has a long, single price spike. The two bottoms look different. Eve is wider than Adam and more rounded looking. The Eve & Adam double bottom chart pattern confirms when price closes above the high between the two bottoms, shown here as the breakout point.

-- Thomas Bulkowski

 

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Eve & Adam Double Bottoms: Other Examples

See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

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Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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