Simple's Green Room

[pennies2007]

One more quick note on the EJ Adam and Eve formation. Once the Eve pattern breaks Adam's low, it'll produce a high volume downside candle which normally results in a temporary bounce that carries the price action back to Adam's price territory...similar to the way a neckline break in a head and shoulders pattern produces a temporary move back up to test the neckline as resistance. The move is usually short lived though and quickly dies off as Eve moves back down to complete the final low target.