Pretty Classic "Adam and Eve" Bottom Here...

[waveslider 10]

On the 10 minute ES chart >

 

Key aspect here was the volume, notice the high volume, nice tapering and then explosion.

 

This is a good pattern to keep in the back of your head. ALthough it's a classic, I think I learned the most about it from Alan Farley's book.

 

ws

[OAC 10]

Many times this pattern would fail, then it becomes an inverted cup and handle

[waveslider 10]

So it would take out the "adam" and then head north?

 

Will be interesting to see if this pitchfork holds. Not likely given the strong trend.

[OAC 10]

So it would take out the "adam" and then head north?

 

 

No, the inverted Cup and Handle is a continuation pattern in this case and it would break the lower parallel line and head south. Often this will coincide with Walter's 14 period CCI crossing or double crossing the 50 line.