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2003issue C021-3

Shape contrast then breakout confirmation in Adam and Eve double bottoms

An Adam and Eve double bottom pairs a pointed first trough with a wider second trough inside a downtrend. The intervening rally must already be on the chart, and only a close through the highest high between the lows turns the sketch into a testable breakout idea.

  • Class the pair as Adam then Eve only when the first low is narrow and pointed, the second is wider, rounded, or flat, and the two shapes look distinctly unlike each other.
  • Keep the sketch in a downtrend with lows several weeks apart, an intervening rally of at least 10 percent, and bottoms that sit close in price.
  • Treat unconfirmed twin lows as incomplete. The primary test is a close above the highest high between the two bottoms.
  • Use nearby resistance and the height-added measure rule to bound or veto the idea, and drop it if nearby support breaks or price falls through the lower bottom.
Entries in this reading3 entries

A two-trough sketch, not a finished call

An Adam and Eve double bottom is a two-trough reversal sketch inside a downtrend. The first low is an Adam bottom: a narrow, pointed trough, often marked by a sharp one-session downward spike. The second is an Eve bottom: a wider, more rounded or flat trough that may contain several minor lows. The two shapes do not look alike.

Claire's Stores Adam and Eve double bottom

Claire's Stores (CLE) daily prices from spring 1999 into early 2000 show a narrow, spiked first trough and a wider second trough, then a July lift through the intervening high. Weekly closes were read off the published OHLC chart; they are approximate, not printed quotes.
Claire's Stores (CLE) daily prices from spring 1999 into early 2000 show a narrow, spiked first trough and a wider second trough, then a July lift through the intervening high. Weekly closes were read off the published OHLC chart; they are approximate, not printed quotes.Claire's Stores (NYSE: CLE) · daily · 1999-03-01T00:00:00.000Z to 2000-03-31T00:00:00.000Z

Weekly closes sampled from the magazine raster (at most one point per labeled month tick plus turning weeks). Intraday highs and lows and the volume pane were not digitized. Y values are approximate to about half a point.

Unlike troughs come first

Twin troughs are classed as Adam then Eve only when the first low is narrow and pointed, the second is wider, rounded, or flat, and the two shapes look distinctly unlike each other. Volume is described as usually heaviest on the Adam low rather than the Eve low. An Eve trough may be built from several nearby minor lows.

The intervening rally must already exist

The setup is placed in a downtrend, with the two lows several weeks apart, an intervening rally of at least 10 percent, and bottoms that sit close in price. Those pieces have to be visible before the pair is even a candidate.

Nested structures still need two close lows

An Eve trough can sit inside a larger head-and-shoulders or cup-with-handle structure without dropping the double-bottom reading if the two main lows remain close in price.

Confirmation is a close through the intervening high

Breakout confirmation is a close above the highest high between the two bottoms. That close is treated as the primary test that the twin-bottom sketch is complete. Price is described as often continuing lower before that close, so unconfirmed twin lows are not treated as a completed pattern.

How nearby resistance is judged

Overhead resistance is any prior high or low, trendline, moving average, round number, earlier pattern, or sideways block that can stall an advance after confirmation. A horizontal consolidation region is a sideways price block located between the start of the downtrend and the pattern high, used when judging whether overhead supply is likely to matter. A nearby block that forms after that downtrend has already begun is treated as weaker resistance that a breakout may pass through.

A shelf trigger, a height-added bound, and invalidation

A support shelf is a flat stretch along the Eve trough that can be read as nearby support. In an untested variant, a close above that shelf is used as an earlier trigger in place of a close through the intervening high. The measure rule adds the distance from the lower trough to the intervening high onto that high and is framed as a minimum expected advance rather than a certainty. Invalidation is a break of nearby support or a drop through the lower of the two bottoms.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
18 of 32 in the Double top and bottom track
20031-4 pp.Next on Double top and bottomReading cyclical bottoms inside secular bear regimesClassify a decline as a cyclical bear inside a secular bear before treating a double bottom, a failed test, or a late-year bounce as a secular-regime turn.
All readings on this track · 32 readings
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  2. 1991Sold-out double bottoms as a three-gate inventory test
  3. 1991A breadth classifier for V-bottoms and W-bottoms
  4. 1991Precomputed price-ratio clusters and double-top tests
  5. 1992Bond turning points as a regime check on equity double tops and breakouts
  6. 1992Commodity-bond ratio as an equity regime overlay
  7. 1992Gold lead confirmation for commodity-index turns
  8. 1994Constructing the thousand-line advance-decline indicator
  9. 1995Evaluating zero-line patterns on a breadth-price oscillator
  10. 1996Constructing double tops from a resistance retest to a trough break
  11. 1996Four-stage double-bottom construction
  12. 1998Double-bottom confirmation and stop placement
  13. 2000Two-bar reversal construction
  14. 2001Constructing double tops from failed resistance retests
  15. 2002Eve-Eve double bottoms: width, confirmation, and overhead resistance
  16. 2002Constructing Eve-and-Eve and classic double bottoms
  17. 2003Eve-Adam double bottoms as a two-step classroom test
  18. 2003Shape contrast then breakout confirmation in Adam and Eve double bottoms
  19. 2003Reading cyclical bottoms inside secular bear regimes
  20. 2004A case study of the shark-attack Fibonacci retracement
  21. 2004Confirming index turns with envelopes, divergence, and breadth
  22. 2005A five-wave euro/dollar case and the support that still had to fail
  23. 2007Constructing commodity seasonal indexes for regime context
  24. 2009Constructing rounded and double-top short setups
  25. 2010Hourly pattern entries, exits, and abstention as one playbook
  26. 2016Ugly double bottom after a yearly low
  27. 2016An unconfirmed stock double bottom next to a confirmed index
  28. 2016Constructing a range-midpoint moving average
  29. 2017Evaluating whole-dollar delays on pattern breakouts
  30. 2018Volume-confirmed bottoms and breakouts with moving averages
  31. 2018Evaluating double bottoms with a locked stochastic confirmation
  32. 2019Forex pairs as relative value: yield spreads, support, and a double bottom
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