What shape is associated with an Eve top or bottom?

The associated shape with an Eve top or bottom is characterized by a rounded shape. This pattern typically signifies a gradual change in trend direction, contrasting with more abrupt patterns that might reflect sharp reversals.

In the context of an Eve top, the rounded shape indicates a slow ascent to a peak before a decline occurs, suggesting that buying pressure is waning gradually rather than suddenly. Similarly, an Eve bottom emphasizes a slow descent to a trough, indicating that selling pressure is decreasing gradually, which can lead to a potential reversal in trend.

This rounded formation is significant in technical analysis as it provides clues about market psychology, where traders can anticipate changes in momentum. The relief between the peak and trough areas shows that the price has moved through a period of indecision, reinforcing the notion of a rounded reversal pattern being observed in the market.