As of 08/12/2022
  Indus: 33,761 +424.38 +1.3%  
  Trans: 15,147 +74.16 +0.5%  
  Utils: 1,042 +15.91 +1.6%  
  Nasdaq: 13,047 +267.38 +2.1%  
  S&P 500: 4,280 +72.88 +1.7%  
YTD
-7.1%  
-8.1%  
 +6.2%  
-16.6%  
-10.2%  
  Targets    Overview: 07/28/2022  
  Up arrow34,500 or 31,850 by 09/01/2022
  Up arrow16,300 or 14,300 by 09/01/2022
  Up arrow1,075 or 990 by 09/01/2022
  Up arrow13,600 or 12,000 by 09/01/2022
  Up arrow4,325 or 4,000 by 09/01/2022
CPI (updated daily): Arrows on 7/15/22
As of 08/12/2022
  Indus: 33,761 +424.38 +1.3%  
  Trans: 15,147 +74.16 +0.5%  
  Utils: 1,042 +15.91 +1.6%  
  Nasdaq: 13,047 +267.38 +2.1%  
  S&P 500: 4,280 +72.88 +1.7%  
YTD
-7.1%  
-8.1%  
 +6.2%  
-16.6%  
-10.2%  
  Targets    Overview: 07/28/2022  
  Up arrow34,500 or 31,850 by 09/01/2022
  Up arrow16,300 or 14,300 by 09/01/2022
  Up arrow1,075 or 990 by 09/01/2022
  Up arrow13,600 or 12,000 by 09/01/2022
  Up arrow4,325 or 4,000 by 09/01/2022
CPI (updated daily): Arrows on 7/15/22

Bulkowski on Eve & Eve Double Tops

Statistics updated on 8/26/2020.

During research for my book, Encyclopedia of Chart Patterns Second EditionEncyclopedia of Chart Patterns 2nd Edition book., I uncovered many facts about double tops. For example, if you look at any twin peak pattern, price will fail to close below the valley formed between those two peaks 60% 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
See Also

Eve & Eve Double Tops: Important Bull Market Results

Overall performance rank (1 is best): 12 out of 36
Break even failure rate: 20%
Average decline: 16%
Pullback rate: 65%
Percentage meeting price target: 43%

The above numbers are based on 942 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 60% 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.
Volume trendPatterns with a rising volume trend show better performance.
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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See Also

 

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My novels:  Bedroom to Boardroom bookBedroom to Boardroom book Remember Me bookRemember Me book Bumper's Story book Head's Law book

Chart Patterns: After the Buy Getting Started in Chart Patterns 2nd edition book Trading Basics book Fundamental Analysis and Position Trading book Swing and Day Trading book Encyclopedia of chart patterns book Encyclopedia of Chart Patterns 3rd Edition book Trading classic chart patterns book


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