Eve-Eve double bottoms: width, confirmation, and overhead resistance

Two rounded lows after a decline

The pattern under study is a two-trough reversal after a decline. It is identified here as two wide, rounded Eve lows at a similar price, separated in time, with a distinct rally between them.

An Eve trough is a wide, rounded minor low that may contain several smaller lows or many downward spikes. An Adam trough is a sharp, often V-shaped low usually formed by a single spike. Width is the practical discriminator: illustrated Eve troughs span about a month, while nearby Adam troughs appear as one- or two-day V-shaped spikes.

Width and separation before any reversal label

Identification requires a decline into the pattern, two distinct minor lows near the same price, a rally of at least 10 percent between those lows, and at least three weeks between the lowest prints.

For study selection the two lows were capped at a 4 percent price gap, while a 20 percent mid-pattern rally is described as the classic benchmark even though traders need not measure it tick for tick.

Lows closer than about three weeks are treated as a different short-term form, such as a one-week horn on a weekly scale or a pipe with no separation, rather than this double-bottom structure.

An illustrated pass and a failed candidate

In one illustrated case the twin lows differed by six cents, the rally between them was 40 percent from 8.59 to 12.05, and the lows were about two and a half months apart.

A candidate with only a 7 percent rally between lows and a 10-day gap fails the mid-pattern-rally and separation tests even if one trough looks sharp and the other looks rounded.

Confirmation waits for a close through the intervening high

The twin-low structure is not treated as confirmed until price closes above the highest high between the two bottoms. That close is the breakout that puts the structure in play.

A close above a flat shelf on an Eve low is described as an earlier trigger, after which that shelf can act as support.

Overhead congestion as the first failure zone

Prior price zones can halt the post-pattern advance or later cushion a pullback. Those zones include a horizontal consolidation region above the pattern and a flat shelf on an Eve bottom.

A horizontal consolidation region above the pattern is treated as overhead resistance that can cap the post-confirmation advance. In the illustrated case the rise stalled in late April at the base of that region.