ADAM - EVE PATTERNS
"Adam and Eve" patterns are variations of "double tops" and "double bottoms" patterns.
They have little more complex trading rules than regular "double bottom" and "double top" patterns, but consist of pattern trading rules similar to Triangles, Pennants and Wedges trading structures.
Adam-Eve patterns are very reliable as they form at the market tops and at the market bottoms. Trading these patterns is relatively easy with low-risk trading rules.
Inside the "Adam-Eve" patterns, the "Adam" part looks like a sharp spike or "V" bottom; where as, "Eve" patterns have a round bottom (or top). Although rare, sequences of "Adam-Eve-Adam" or "Eve-Adam-Eve" patterns do occur, and they may be more reliable than "Adam-Eve" or "Eve-Adam" pairs.
These patterns tend to signal much bigger moves. A sequence of "Adam-Adam" or "Eve-Eve"' is also very common.
Trade: Although these patterns are visually easy to detect, a confirmation is needed for successful trading. Many times "double bottoms" and "double tops" may continue to form "multiple tops" and "multiple bottoms." Trades are entered in the direction of the breakout - breakdown of the middle spike between "Adam and Eve" structures.
Target: "Adam and Eve" pattern formations are very profitable. The targets can be set at the previous swing high - swing low of the first swing in the "double top" or "double bottom."
Subsequent targets would be set at the next "higher swing high or the next "lower swing low."
Stop: "Adam and Eve" patterns also fail. Protect trades using the pattern high for "short" trades and pattern low for "long" trades.
ADAM-EVE
EVE-EVE
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