Eve & Eve Double Bottom by Thomas Bulkowski
Hereís a look at one of the four combinations
of double bottoms.
You may be familiar with double bottoms,
but have you ever heard of an Eve & Eve
double bottom? I hadnít heard of them
myself until a few years ago, when I was
researching my latest book, Trading
Classic Chart Patterns. After discovering
the Adam & Eve combinations of double
bottoms on HARDRightEdge.com, I expanded their findings
to include all four types: Eve & Eve, Adam & Adam, Eve & Adam, and Adam & Eve. Iíll
discuss the latter three types in future articles.
This article will focus on the Eve & Eve
First, some definitions. Figure 1 shows
identification guidelines for double bottoms.
Start with a declining price trend leading to the
chart pattern. For the best performance, choose
a decline that is either long-term (over six
months) or short-term (up to three months). An
intermediate-term decline (three to six months)
leading to an Eve & Eve double bottom suggests
underperformance after the breakout.