Adam and Eve Double Top Pattern

• Adama and Eve double top pattern is the exact opposite of Adam and Eve double bottom pattern in terms of the trend but quite similar in the rest of the things.
• This pattern is observed during an upward trend.
• It indicates a trend reversal and a bearish rally is seen thereafter.
• Since it’s a double top pattern, two tops are observed.
• The first one being Adam, a narrow and inverted V shaped top and the second one being Eve which is more wider and rounded, like inverted U.
• The valley formed between both the tops should be atleast 10% lower, whereas the difference between both the price tops should be less than 3%.
• The average time interval between the formation of both the peaks is 1 month.
• This pattern is observed only after the price goes below the valley after the second top is formed, leading to a trend reversal.
• Moreover, there is a huge volume near the Adam peak compared to the Eve peak.

• Compute the difference between the Adam top and valley bottom. Multiply it with the percentage meeting price target (~45%) and subtract the value from the breakout, to get the downward target range. Similarly, mark the stop above the Eve peak.
• Traders can enter the market after the breakout and initiate their short 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 drops after the double head pattern occurs. Hence, it is not a reliable pattern.