Adam and Eve Pattern

 Adam and Eve Pattern!!

Adam and Eve works more precisely in high-volume trades/high volatility markets and is a bullish/bearish reversal double bottom/top chart pattern, a combination of V and U shape price patterns. It is a high success ratio chart pattern that is a variation of the usual double top/bottom chart pattern.

The founder of this pattern is Bulkowski, who writes about this pattern in his famous book “Encyclopedia of Chart Patterns.” 

Because of the high degree of resemblance, Adam and Eve is also known as Adam and Eve double top/bottom chart pattern.

Adam is the first part of the pattern.and resembles a “V” shape which begins at a higher point, and then the price drops to find a lower point-the lower price of the assets. After touching the lower point of the “V”, the market price begins to rise until the the price is equal to the first higher point in the “V,” thus the shape of Adam becomes clear.

Eve a “U” shape structure which is the second component of this chart pattern. The prices dip and slightly rise again to form a U shape. A double-top Adam and Eve is an inverted form of the double-bottom chart pattern.

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• Bearish Adam and Eve chart pattern

Its a bearish reversal pattern composed of an inverted V and U.Adam resembles the inverted V with a peak while eve is an inverted U shape structure. 

This pattern indicates that the market is about to take a bearish reversal where the bulls will begin to lose power. This shows that a number of sellers will soon dominate the market.

When Adam and Eve pattern is confirmed, the market takes a bearish break out. The overall pattern resembles inverted V and U reversed instead of M in the case of a typical double-top chart pattern.

• Bullish Adam and Eve chart pattern

Instead of a typical W shape, this pattern resembles a “VU” shape whereby Adam is a “V” shape, and Eve is a “U” shape.

This bullish reversal pattern indicates the bulls will be in control of the market while the bears begin to lose their power, and the market’s bullish sentiment begins to increase control followed by a bullish breakout.

Courtesy of https://howtotrade.com/chart-patterns/adam-and-eve-pattern/