🐾 The “Adam and Eve” pattern is a reversal formation in a downtrend. A sharp and deep first base with high volume (Adam) and a gradual rounded second base with decreased volume form the pattern. Price action then consolidates in a narrow range, and the market instrument confidently breaks above the neckline.
🐾 When Eve’s peak transitions into a flat range, it represents an excellent entry point, but only after the breakout.
🐾 In essence, working with this pattern is no different from a double bottom or double top:
Entry - after the breakout of the neckline or on a retest of the breakout level.
Target - the target is equal to the height from the pattern’s low to the neckline.
Stop - after entry below the breakout level or local minimum.
