Double Bottom (Adam & Eve)

The Adam & Eve Double Bottom is a bullish reversal pattern with two distinct troughs:

• Adam bottom: the first trough is narrow and sharp, often a spike downward that quickly rebounds.
• Eve bottom: the second trough is rounded and broader, reflecting slower accumulation.
• A neckline forms at the high between the two troughs.
• Breakout occurs when price closes above neckline resistance with volume.

The contrast in trough shape distinguishes this from a classic double bottom.

The Adam & Eve Double Bottom illustrates a change from panic selling to gradual accumulation:

• The Adam trough forms when sellers capitulate quickly, producing a sharp low. Value buyers snap up the bargain, driving a swift rebound.
• After the relief rally, sellers push down again, but this time the decline is slower, more controlled — the Eve trough.
• Buyers step in consistently during this rounded retest, absorbing supply.
• Breakout above the neckline confirms that the worst of the selling is over and bullish momentum has returned.

This combination of a panic low followed by deliberate accumulation is considered highly bullish.

Bulkowski’s research on Adam & Eve bottoms:

• Upward break frequency: ~72%.
• Failure rate: ~9%.
• Average rise after breakout: ~34%.
• Throwback frequency: ~65%.
• Target met rate: ~67%.

Adam & Eve bottoms are among the most reliable reversal patterns, outperforming Eve & Adam and twin Adam bottoms.

Entry: Buy on breakout above neckline resistance. Aggressive traders may scale in as the Eve trough confirms support, but safer entries wait for neckline clearance.

Stop loss: Below the Eve trough (conservative) or just under neckline after breakout (aggressive).

Targets: Minimum = distance from neckline to trough projected upward. Secondary = major resistance levels above.

Invalidation: Breakdown below the Eve trough negates the setup.

• Time separation: The best setups have the two troughs separated by at least several weeks. Very close spacing reduces reliability.
• Volume signature: High volume on the Adam spike, lower volume on Eve, then expansion on breakout.
• False breakouts: Price sometimes clears neckline briefly before falling back; waiting for a confirmed close above neckline reduces risk.
• Symmetry: The first sharp spike (Adam) followed by a rounded base (Eve) is key — without that shape contrast, it may be a standard double bottom.

• If the “Adam” trough is not sharp and distinct, or the “Eve” trough is not rounded.
• If neckline resistance is extremely strong and not convincingly broken.
• If breakout occurs on weak volume.
• If broader market conditions are bearish and countertrend setups tend to fail.