Adam & Eve Pattern

Tom Bulkowski first presented this chart pattern in his book “Encyclopedia of Chart Patterns” which was

published in 2000 and then launched its second edition in 2011. Adam & Eve is a trend reversal chart

pattern which is mostly used to define the bottom of an asset but it is equally useful in confirmation of

bearish reversal as well.

Adam & Eve is a kind of double bottom chart pattern where price moves down fast then quickly bounce

back up at least 10% before reversing down to form the Eve. Fast bounce indicates that it is a high

demand area. Price again falls back slowly to the same low and bounce back up again in smooth round

shape. The first bottom is called Adam while the second one is called Eve. While forming an Adam you

will experience high volume and Adam shape usually resembles to a “V" or it can also be a quick price

spike with a long wick. On the other hand, during formation of Eve volume falls back but increases when

price again moves up and price usually moves in small spikes in contrast with the Adam.
Adam and Eve bottoms can have marginal price variation where Eve’s bottom can be a little higher than

Adam's bottom. When Eve breaks Adam's second legs top it is considered a confirmation of the pattern.

If Eve's decline is almost equal to Adam and the size of Eve is big then you can expect a bigger bounce.

How to trade Adam and Eve

Trading Adam and Eve pattern is easy. You can take a trade when price breaks the resistance indicated in

the chart above. Price may retest the resistance again and bounce back which will further confirm the

pattern. The first profit target is usually set equal to the size of the price difference between the bottom

and the resistance. For example, if the bottom price was 10 and resistance is at 15 then the first profit

target will be equal to 20 (15-10+15). But you should always use Fibonacci levels to predict the profit

target levels. Don’t forget to place the stop loss below the bottom or if you play tightly then you can

even place it a bit below the resistance marked in the chart.