Below is a slider quiz to test your ability to identify double bottoms (Adam & Adam) and trade them. Captions appear below the pictures in red for guidance, so be sure to scroll down far enough to read them.
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This quiz is more about double bottoms than it is about the Adam & Adam variety. Look for two downward spikes, separated by a peak between the valleys. Volume should trend
lower from the first bottom to the second (but don't worry if it trends upward). AB is the double bottom in this case. C is the peak between the two valleys. When price closes above C,
it confirms the double bottom as a valid one. That happens to the right of D. The time between the two valleys is often a month or more, but I don't put such a limitation on double bottoms.
The Adam term refers to the shape of the bottom. Adam valleys are narrow, often one lone spike as in this case. Eve bottoms are wider and more rounded looking. If you use
Patternz, it'll make the distinction for you.
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Find as many double bottoms as you can. For help, click here.
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The double bottom is at AB even though the two bottoms aren't equal. They are close enough. CC is not a double bottom. Why? Because the stock closes below the lower of the
two bottoms on the way to A. In other words, the pattern does not confirm as a valid one. Technically, DD fails the confirmation test, also. You probably can't see it, but the spike at E
doesn't close above the green line, so the double bottom doesn't confirm. F is better called a triple bottom.
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Try again. Find as many double bottoms as you can.
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Double bottoms are AA, BB, CC, and DD. It might appear that EC is another double bottom, but it's not. E is not a minor low, so it doesn't count as a valley.
That would leave a double bottom at BC, and those two bottoms are just too far apart in price to be called 'equal.'