THE DOUBLE BOTTOM:
EVE&EVE(THE ROUNDED DOUBLE BOTTOM)
The Eve & Eve double bottom is the best performing of the Adam and Eve combinations of double bottoms. It has a small break even failure rate and large average rise. The Eve & Eve double bottom is what most chartists call the classic double bottom.
PREVIOUS MARKET PERFORMANCE:
Break even failure rate: 4%
Average rise: 40%
Throwback rate: 55%
Percentage meeting price target: 67%
Price trend Downward leading to the pattern.
The Shape has Two distinct valleys that look similar. Eve bottoms are wide and more rounded appearing. Spikes that appear tend to be numerous and short.
The rise between bottoms should measure at least 10%(most times), but allow variation.
Separation The twin valleys are several weeks apart with most falling in the 2 to 7 week range. Bottoms wider than 7 weeks and performance deteriorates.
The double bottom confirms as a true double bottom once price closes above the peak between the two valleys.
Volume Usually higher on the left bottom(not shown)
NOTE: An adventurous trader, can also choose to buy at the current price, but make sure he/she moves the stop loss as price fluctuates.
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.