Adam and Eve

Turn "Adam and Eve" shows the importance of the central peak in the formation of "dual foundation." Very sharp and deep first base with a large amount of (Adam) forms a "dual authority". Market-based instruments and then adjusted upward to the level of recovery and then develops a longer and more sloping second base (Eva), with relatively low volatility. Price movements and then compressed in a narrow range and market-based instruments confidently breaks up.

When Eve becomes the apex flat range, this represents an excellent entry point after the break. As in many of these submodels, the resistance often goes straight to the top of the central recovery. This shows that the most important point when considering the model of "dual authority" is the ratio between the central point and the current price.

Less frequent model "Eve and Adam." Price initially formed with the support of a number of the minimum with a relatively small amount in a rounded curve Eve. The market is trying to climb back, but fails to restore normal levels. Fear covers a crowd and price movements are occurring at a higher variability. It should be sharp and severe decline, which casts a market instrument back to its minimum. A spike of Adam when turning large amounts, often with the extremum, superior authority Eve. When a subsequent upward trend as the price can go from under the cork of champagne, if the market has changed again to positive.

Since the "double bottom" occurs when descending trend, then the risk should be limited. Greed makes us believe that a bottom and we can easily disappointed. Even the impressive turn bring a small profit if the price will not be able to climb back from the base. When you choose a stop-orerov and exit points, overcoming the previous minimum is a natural choice. When choosing entry points, make sure that the stop-order at this level is acceptable for you. And do not put it too far. With a minimum price break down quickly gather momentum in the search for new support. A successful login at the base also requires a good shutter speed. Even when all the technical conditions are met, emotional mood of those turning points will be sharply negative. However, the potential short-term profit, however, is very significant. In addition to the other players ready to gamble on a good upward movement, a high quick profit will attract new customers, giving impetus to the movement of a blast from these points. Perhaps only for this one reason, serious traders can not ignore the model of "dual authority".

Facing at the base
Rounded base Eve is formed longer than the sharp spike of Adam. Watch for a decrease in volume, as market-based instruments being consolidated and prepared for a new bottom-up trend.

Formation of Adam and Eve are not limited to the grounds. Look for them at the end of parabolic rallies. Formation of Adam and Eve "appear rarely, but when they occur, it is very profitable. Changing the emotions of the market crowd of sharply negative to very positive provokes azhiotazhnye buying, pushing up market-based instruments from its foundation.

The double peak of Adam and Eve
Price charts form many unique patterns on the top of the market. Some classic, such as oblique triangle, can be recognized and used for commerce does not require much effort. But the market crowd, subject to emotions, also creates a lot less reliable models, since greed is slowly degenerating into unconscious fears. The best technical analysts sometimes come to an impasse in the analysis of conflicting forces, while the random model, type "diamond" burn commercial capital, keel irregularly to and fro.

Literate traders avoid these fruitless positions and only seek profit where their chances are much higher. They first determine the common features found in most turn on the tops: the price form, at least one lower peak in the broad consolidation in the violation of the basic bottom-up trend. The common pattern of double peaks is becoming a center for the entrance to the trade. From this a clear indicator, they follow the price up to a natural break point and then come into play in the break.

The double peak of Adam and Eve "is a mirror image of a double reason to Adam and Eve. As shown above, the dual basis of "Adam and Eve" is the first foundation of shipa accompanied by rounded second base. Turn the model and you get a very predictable formation to effectively trade on the spread of the peaks.

This simple peak of Adam and Eve gives traders an excellent opportunity for quick sales at high profit. Pay attention to this classic example presented in the chart "Quantum". Price is not reached the third peak at the entrance to a large bearish trend. Successful short positions in the model of Adam and Eve "could be opened at the first break correctional minimum, independently of the main trend. However, use strict stop-order to avoid a "snail's turn." It occurs when a short sharp rally suddenly arose immediately after the collapse of stoporderov below the break points.

Each upward trend creates a positive attitude, which must be overcome by modeling the top. Nodes Adam and Eve are effective bar structure to accomplish this task. A strong turn Adam first is fear. Then the slow dome of Eve absorbs remaining bullish momentum, while dissipating the volatility should resume the rally. Because the dome is formed, the price is rapidly moving to lower levels without substantial resistance.

Attentive technical analysts learn model "Descending Triangle" and "Adam and Eve" in a more complex turning formations. A large number of vertices contains some of the characteristics of these familiar patterns. The enthusiasm of the crowd must be overcome to move to the decline. After repeated unsuccessful attempts to reach new price highs, the enthusiasm of buyers, eventually giving. Then the market can finally drop from its own weight.

The breakthrough double peaks
The multi-peak "Quantum" in 1997. was broken with the help of a model double-peak "Adam and Eve." Keep track of volume and rate volatility to decline gradually through the formation of the second rounded tops. In many cases, peak of "Eve" includes more than the price bars, than the peak of "Adam", which it preceded.

Forex Magazine
based on hardrightedge.com