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Zivul33
Feb 17, 2022 5:46 PM

What's the ADAM & EVE pattern?  Education

Description

According to Thomas Bulkowski's Encyclopedia Of Chart Patterns, the Adam and Eve formation is characterized by a sharp and deep first bottom on high volume (Adam). The stock bounces and develops a more gentle correction, printing a second bottom (Eve) on lower volatility.

Eve's rounded bottom takes longer to develop than the Adam spike and it is characterized by lower volumes. Price action congests into a tight range and the stock then breaks to the upside. The top of Eve marks an excellent entry point when broken. The resistance is often located along the top of the center retracement pivot. Sometimes they occur at the end of parabolic rallies. The opposite is true when the Adam and Eve formation identifies a top.

Risk must be managed very carefully. Sometimes you might conclude that a bottom has been reached, only to discover that it's a breakout to new lows. Further, stop-losses must be applied with discipline. Don't stick around too long; the failure of this pattern will gain downside momentum quickly. Entry is not easy from the psychological perspective, because sentiment will be negative during this type of market action and volatility will be high. The potential for short-term profits is high, because the reversal, when successful, is explosive.

Drep historical swings 👇🏽

Nov 19, 2021




Dec 16, 2021





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Same setup to be active from here for the same SL to targets ratio

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DREP TP1,TP6 ✅✅✅✅✅✅
Comments
CypherWarrior
amazing
MhamadMhanna
U dont have any update?
MhamadMhanna
Hello do you have any update on current situation of DREP? Will it go to 4 5$? Break ATH or not because its been so long drep with bullish cycles is not moving
Vibranium_Capital
Amazing in depth analysis
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