As of 10/07/2024
Indus: 41,954 -398.51 -0.9%
Trans: 15,783 -31.37 -0.2%
Utils: 1,027 -24.05 -2.3%
Nasdaq: 17,924 -213.95 -1.2%
S&P 500: 5,696 -55.13 -1.0%
|
YTD
+11.3%
-0.7%
+16.5%
+19.4%
+19.4%
|
 43,500 or 41,600 by 10/15/202416,800 or 15,700 by 10/15/20241,125 or 1,025 by 10/15/202419,000 or 17,600 by 10/15/20245,900 or 5,600 by 10/15/2024 |
As of 10/07/2024
Indus: 41,954 -398.51 -0.9%
Trans: 15,783 -31.37 -0.2%
Utils: 1,027 -24.05 -2.3%
Nasdaq: 17,924 -213.95 -1.2%
S&P 500: 5,696 -55.13 -1.0%
|
YTD
+11.3%
-0.7%
+16.5%
+19.4%
+19.4%
| |
|
43,500 or 41,600 by 10/15/202416,800 or 15,700 by 10/15/20241,125 or 1,025 by 10/15/202419,000 or 17,600 by 10/15/20245,900 or 5,600 by 10/15/2024 | ||
Statistics updated on 8/26/2020.
During research for my book,
Encyclopedia of Chart Patterns Second Edition
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Adam and Eve are terms that describe how the top looks. Adam is a narrow, pointed top, perhaps with a one-day upward spike. Eve tops are more rounded looking and wider. If they have spikes, they tend to be more numerous and shorter. Many times the difference between Adam and Eve is the width of each over their entire height. Adam tops tend to remain narrow but Eve tops widen substantially over their height. When trying to decide which is which, ask yourself if the two tops appear different or similar. With Eve & Eve, the two should look similar (both wide).
The Eve & Eve double top is what some chartists call the classic double top.
|
Overall performance rank (1 is best): 12 out of 36
Break even failure rate: 20%
Average decline: 16%
Pullback rate: 65%
Percentage meeting price target: 43%
The above numbers are based on 942 perfect trades. See the glossary for definitions. |
Eve & Eve Double Top |
|
| Characteristic | Discussion | 
Configuration
|
| Price trend | Upward leading to the pattern. | |
| Shape | Two distinct tops that look similar. An Eve top is rounded and wide looking, but sometimes has several short spikes poking out. | |
| Valley | The valley drop between the tops should measure at least 10%, but allow exceptions. The figure to the right shows this for a typical double top chart pattern. | |
| Top price | The variation between price peaks is small, often less than 3%. The two tops should appear to peak near the same price. The figure to the right shows a 5% variation for a typical double top. | |
| Separation | The twin peaks are several weeks apart with most falling in the 2 to 6 week range. The figure to the right shows 2 months for a typical double top. | |
| Confirmation | The double top confirms as a true double top once price closes below the valley between the two peaks. The lowest red line on the figure to the right shows this. | |
| Volume | Usually higher on formation of the left peak. |
| Trading Tactic | Explanation | 
The Measure Rule
|
| Measure rule | Compute the height from the highest peak (point B on the chart to the right) to the lowest valley (A) in the pattern then multiply it by the above “percentage meeting price target.” Subtract the result from the breakout price (A) to get the target (C). | |
| Price reversal | Price must have something to reverse, so if the rise leading to the double top is small, expect a small decline. | |
| Price velocity | A study concludes that a high velocity move leading to the chart pattern results in a high velocity move after the breakout. | |
| Confirmation | Wait for confirmation -- price to close below the valley floor (point A in the figure to the right). If you don't wait, there's a 60% chance that price will continue higher without confirming the double top. | |
| Trend end | A short-term rise leading to the double top results in the best post breakout performance. | |
| Volume trend | Patterns with a rising volume trend show better performance. | |
| Pullbacks | Pullbacks hurt post breakout performance. |
The above figure shows an example of an Eve & Eve double top chart pattern. Both Eve tops appear rounded, wide, not narrow and pointed like their Adam counterparts. The Eve & Eve double top confirms as a true double top when price closes below the confirmation line, shown in the above chart as a blue horizontal line. A pullback brings the stock back to the breakout price before the decline resumes.
-- Thomas Bulkowski
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