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  •  Adam and Eve Double Bottom Chart Pattern

 Adam and Eve Double Bottom Chart Pattern

  • Posted by Abhilash Bandari
  • Date October 5, 2020
  • Comments 196 comments

Adam and Eve Double Bottom Pattern

  • This pattern is observed during a downward trend.
  • It indicates a trend reversal and a bullish rally is seen thereafter.
  • Since it’s a double bottom pattern, two valleys are observed.
  • The first one being Adam, a narrow V shaped bottom and the second one being Eve which is more wider and rounded, like U.
  • The rise between both the valleys should be atleast 10% higher, whereas the difference between both the price bottoms should be very less.
  • The average time interval between the formation of both the valleys is 1 months.
  • This pattern is observed only after the price goes above the peak after the second valley is formed, leading to a trend reversal.
  • Moreover, there is a huge volume near the Adam valley compared to the Eve valley..

This is the 1day chart of Maruti Suzuki (BSE) around Oct, 2018

The price difference between Adam bottom and the peak is around 600, indicating a 10% difference in price level

The price rose from Rs.7300 to rs.7900 after breakout

  • Compute the difference between the Adam valley and peak between the valleys. Multiply it with the percentage meeting price target (~65%) and add the value to the breakout, to get the upward target range. Similarly, mark the stop below the Eve valley.
  • Traders can enter the market after the breakout and initiate their long position in the market. Their target price and stop price, both are marked using the above calculation.
  • However, there is only 35% probability that the price rises after the double head pattern occurs. Hence, it is not a reliable pattern.
  • The pattern is more reliable when there is a volume decline during the pattern formation. It is also reliable when there is a flat base before the formation of the pattern.

 

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Abhilash Bandari

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Diamond Top and Bottom Chart Pattern
October 5, 2020

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Adam and Eve Double Top Chart Pattern
October 7, 2020

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Company Summary

Bajaj Electricals Limited is engaged in engineering and projects; power distribution, illumination and consumer durables businesses.

It has a range of domestic and kitchen appliances comprising water heaters, room heaters, coolers, irons, mixers, induction cookers, toasters, kettles, microwave, rice cookers, gas stoves, non-electrical kitchen aids and pressure cookers.

It offers ceiling, table, pedestal, wall, fresh air and industrial fans, and lighting solutions, such as light sources, light emitting diode-based lighting products, domestic luminaires, torches and lanterns.

Key Highlights of Company Business

Segments and Products

The Company's business segments consist of

  1. Lighting;
  2. Consumer Durables;
  3. Engineering & Projects,

The Lighting segment includes lamps, tubes and luminaries.

The Consumer Durables segment includes appliances and fans.

The Engineering & Projects segment includes transmission line towers, telecommunications towers, highmast, poles and special projects.

The Others segment includes diecasting and wind energy.

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