1. Since No'20, Price BREAK-OUT can be seen, many times, after CONSOLIDATION that indicates the price will start trending higher .
2. Mid-Term MA(tells that stock is in up-trend) and Resistance level of Eve & Adam DB, are almost at same levels, which indicates strength in stock.
3. About Double Bottom pattern .....
The first bottom of the pattern is just a continuation of the previous downtrend and is a new lower low. The middle peak of the double bottom is an expected retracement after the lower low. However, trouble arises when prices move down from the middle peak and attempt to make yet another lower low for the downtrend. Traders have been able to push prices progressively lower thus far, but when prices fail to fall past the previous low, traders become worried. Once the high of the middle peak is penetrated, the downtrend is considered dead by traders. Prices were unable to make lower lows (making lower lows is one of the definitions of a downtrend) and now since the high of the middle peak (technically a high) has been broken above, now a new high has been created (making a higher high is one of the definitions of an uptrend). Now that the downtrend has been broken and a new uptrend has been created, it is expected that traders will pile onto the new uptrend and prices will move higher.
EA double bottom pattern is the third best performing of the four double bottom patterns with an average rise of 37% after the price breakout confirmation before any retracement of 20% or more occurs.
Identification of Eve & Adam DB:
1. Price trend: Downward leading to the pattern.
2. Shape: Two distinct valleys that look different. Eve bottoms appear first and are wider and more rounded looking. Adam bottoms appear after Eve and are narrow, V-shaped, sometimes with one long price spike. Spikes that appear tend to be more numerous and shorter on Eve bottoms.
3. Peak: The rise between bottoms should measure at least 10%, but allow variations.
4. Bottom price: The price variation between bottoms is small, usually between 0% and 4%. The two valleys should appear to bottom near the same price.
5. Confirmation: The double bottom confirms as a true double bottom once price closes above the peak between the two valleys.
Last but not least - MACD : The Moving Average Convergence/Divergence indicator is a momentum oscillator primarily used to trade trends. Although it is an oscillator, it is not typically used to identify over bought or oversold conditions. It appears on the chart as two lines which oscillate without boundaries. The crossover of the two lines give trading signals similar to a two moving average system. "SHOWS POSITIVE DIVERGENCE"
2. Mid-Term MA(tells that stock is in up-trend) and Resistance level of Eve & Adam DB, are almost at same levels, which indicates strength in stock.
3. About Double Bottom pattern .....
The first bottom of the pattern is just a continuation of the previous downtrend and is a new lower low. The middle peak of the double bottom is an expected retracement after the lower low. However, trouble arises when prices move down from the middle peak and attempt to make yet another lower low for the downtrend. Traders have been able to push prices progressively lower thus far, but when prices fail to fall past the previous low, traders become worried. Once the high of the middle peak is penetrated, the downtrend is considered dead by traders. Prices were unable to make lower lows (making lower lows is one of the definitions of a downtrend) and now since the high of the middle peak (technically a high) has been broken above, now a new high has been created (making a higher high is one of the definitions of an uptrend). Now that the downtrend has been broken and a new uptrend has been created, it is expected that traders will pile onto the new uptrend and prices will move higher.
EA double bottom pattern is the third best performing of the four double bottom patterns with an average rise of 37% after the price breakout confirmation before any retracement of 20% or more occurs.
Identification of Eve & Adam DB:
1. Price trend: Downward leading to the pattern.
2. Shape: Two distinct valleys that look different. Eve bottoms appear first and are wider and more rounded looking. Adam bottoms appear after Eve and are narrow, V-shaped, sometimes with one long price spike. Spikes that appear tend to be more numerous and shorter on Eve bottoms.
3. Peak: The rise between bottoms should measure at least 10%, but allow variations.
4. Bottom price: The price variation between bottoms is small, usually between 0% and 4%. The two valleys should appear to bottom near the same price.
5. Confirmation: The double bottom confirms as a true double bottom once price closes above the peak between the two valleys.
Last but not least - MACD : The Moving Average Convergence/Divergence indicator is a momentum oscillator primarily used to trade trends. Although it is an oscillator, it is not typically used to identify over bought or oversold conditions. It appears on the chart as two lines which oscillate without boundaries. The crossover of the two lines give trading signals similar to a two moving average system. "SHOWS POSITIVE DIVERGENCE"