Notices

Adam and Eve

From Traderpedia

Definition:
A distinctive chart pattern formed at tops and bottoms.


An Adam and Eve formation can signify a reversal following a top or a bottom.

Adam and Eve Top

A distinctive variation of an ordinary double top. The first top "Adam" is marked sharply by a high volume bar or bars that spikes to a new high and then retreats significantly. There is a lot of "fresh air" around the top. The second top "Eve" is formed more slowly on relatively low volatility and is often rounded with volume decreasing as it takes shape.


Image:adam&eve_top.jpg


Adam and Eve Bottom

The exact opposite to the previous. A distinctive variation of an ordinary double bottom. The first bottom "Adam" is marked sharply by a high volume bar or bars that spikes to a new low and then retreats significantly. There is a lot of "fresh air" around the bottom. The second bottom "Eve" is formed more slowly on relatively low volatility and is often rounded with volume decreasing as it takes shape.

[edit] See also

Technical Analysis