Adam & Eve Bottom formation on Mindtree, Long for Tgts 535-576, Stoploss : Just below 433
Trade closed: target reached
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532 HIGH
Comments
Ravi008
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Stop loss below 433 ??
BHUMIT-ARQ
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@Ravi008, As bottom points of the pattern should be taken as the stoploss
drchandramohankk
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Sir, it is a new terminology that I have learnt to day-adam and eve. Kindly explain the pattern and how to identify the same and the implications of it on stock price movement.
BHUMIT-ARQ
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@drchandramohankk, Thanks Sir,
Adam is a term that describes how the bottom looks, in this case, a narrow, pointed bottom, perhaps with a one-day downward spike. Eve bottoms are more rounded looking and wider."Adam and Eve" patterns are variations of "double tops" and "double bottoms" patterns. They have little more complex trading rules than regular "double bottom" and "double top" patterns.
Target: "Adam and Eve" pattern formations are very profitable. The targets can be set at the
previous swing high l swing low of the first swing in the "double top" or "double bottom."
Subsequent targets would be set at the next "higher swing high or the next "lower swing low."
Stop: "Adam and Eve" patterns also fail. Protect trades using the pattern high for "short"
trades and pattern low for "long" trades.