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 & Eve Double Tops

 

Statistics updated on 10/17/2018.

During research for my book, Encyclopedia of Chart Patterns Second EditionEncyclopedia of Chart Patterns 2nd Edition book., I uncovered many facts about double tops. I discovered that they fail 65% of the time, but that rate is deceiving. If you look at any twin peak pattern, price will fail to close below the valley formed between those two peaks 65% of the time. Price rises instead of drops.

If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

-- Tom Bulkowski

$ $ $

Adam and Eve are terms that describe how the top looks. Adam is a narrow, pointed top, perhaps with a one-day upward spike. Eve tops 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 tops tend to remain narrow but Eve tops widen substantially over their height. When trying to decide which is which, ask yourself if the two tops appear different or similar. With Eve & Eve, the two should look similar (both wide).

The Eve & Eve double top is what some chartists call the classic double top.

Important Results
Identification Guidelines
Trading Tips
Example
Other Examples
See Also

Important Bull Market Results for Eve & Eve Double Tops

Overall performance rank (1 is best): 49 out of 53
Break even failure rate: 34%
Average decline: 12%
Pullback rate: 69%
Percentage meeting price target: 45%

The above numbers are based on 229 perfect trades. See the glossary for definitions.

Eve & Eve double top chart pattern
Eve & Eve Double Top
Score your pattern
for performance

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Eve & Eve Double Top Identification Guidelines

CharacteristicDiscussion Double top setup
Configuration
Price trendUpward leading to the pattern.
ShapeTwo distinct tops that look similar. An Eve top is rounded and wide looking, but sometimes has several short spikes poking out.
ValleyThe valley drop between the tops should measure at least 10%, but allow exceptions. The figure to the right shows this for a typical double top chart pattern.
Top priceThe variation between price peaks is small, often less than 3%. The two tops should appear to peak near the same price. The figure to the right shows a 5% variation for a typical double top.
SeparationThe twin peaks are several weeks apart with most falling in the 2 to 6 week range. The figure to the right shows 2 months for a typical double top.
ConfirmationThe double top confirms as a true double top once price closes below the valley between the two peaks. The lowest red line on the figure to the right shows this.
VolumeUsually higher on formation of the left peak.

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Eve & Eve Double Top Trading Tips

Trading TacticExplanation Eve & Eve double top measure rule
The Measure Rule
Measure ruleCompute the height from the highest peak (point B on the chart to the right) to the lowest valley (A) in the pattern then multiply it by the above “percentage meeting price target.” Subtract the result from the breakout price (A) to get the target (C).
Price reversalPrice must have something to reverse, so if the rise leading to the double top is small, expect a small decline.
Price velocityA study concludes that a high velocity move leading to the chart pattern results in a high velocity move after the breakout.
ConfirmationWait for confirmation – price to close below the valley floor (point A in the figure to the right). If you don't wait, there's a 65% chance that price will continue higher without confirming the double top.
Trend endA short-term rise leading to the double top results in the best post breakout performance.
Yearly lowDouble tops within a third of the yearly low perform best.
Volume trendThe volume trend has almost no influence on post breakout performance (the performance differences are minor).
PullbacksPullbacks hurt post breakout performance.

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Eve & Eve Double Top Example

Eve & Adam double top chart pattern example

The above figure shows an example of an Eve & Eve double top chart pattern. Both Eve tops appear rounded, wide, not narrow and pointed like their Adam counterparts. The Eve & Eve double top confirms as a true double top when price closes below the confirmation line, shown in the above chart as a blue horizontal line. A pullback brings the stock back to the breakout price before the decline resumes.

-- Thomas Bulkowski

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Other Eve & Eve Double Top 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.

My novels:      New                  Bumper's Story Head's Law

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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