What this pattern shows
- Adam & Eve is a double-bottom reversal pattern: first a sharp V‑shaped low (Adam), then a wider rounded low (Eve)
- It usually forms after a downtrend and signals potential bullish reversal once resistance (neckline) breaks.
Neckline and breakout level
- As long as price stays below this line, the pattern is only a potential setup, not confirmed.
- A clean daily close above the neckline turns the structure into an active bullish reversal pattern.
Volume is the real confirmation
- Valid Adam & Eve breakouts typically come with a clear expansion in buy volume at the neckline.
- High volume shows real demand stepping in, reducing the chance of a fake breakout
- Low or declining volume on the break is a warning: price can quickly fall back below resistance and invalidate the setup.
How traders usually play it
- Entry idea: wait for a breakout candle closing above the neckline with strong volume spike versus recent sessions.
- Target idea: measure the vertical distance from bottoms to neckline and project it above the breakout for a first TP.
- Risk idea: place invalidation below the neckline or below Eve’s low, depending on aggressiveness and timeframe.
- Adam & Eve is a double-bottom reversal pattern: first a sharp V‑shaped low (Adam), then a wider rounded low (Eve)
- It usually forms after a downtrend and signals potential bullish reversal once resistance (neckline) breaks.
Neckline and breakout level
- As long as price stays below this line, the pattern is only a potential setup, not confirmed.
- A clean daily close above the neckline turns the structure into an active bullish reversal pattern.
Volume is the real confirmation
- Valid Adam & Eve breakouts typically come with a clear expansion in buy volume at the neckline.
- High volume shows real demand stepping in, reducing the chance of a fake breakout
- Low or declining volume on the break is a warning: price can quickly fall back below resistance and invalidate the setup.
How traders usually play it
- Entry idea: wait for a breakout candle closing above the neckline with strong volume spike versus recent sessions.
- Target idea: measure the vertical distance from bottoms to neckline and project it above the breakout for a first TP.
- Risk idea: place invalidation below the neckline or below Eve’s low, depending on aggressiveness and timeframe.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.