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Island Reversal Bullish Chart Pattern
 

Implication


An Island Bottom is a bullish signal indicating a possible reversal of the current downtrend to a new uptrend. This pattern is an indication of a financial instrument's SHORT-TERM outlook.

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Description


The Island Bottom occurs when the price "gaps" below a specific price range for a number of days and then is confirmed when the price "gaps" above the original range.

Island Bottom Short-term Pattern



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Island Top Short-term Pattern

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Implication


An Island Top is a bearish signal indicating a possible reversal of the current uptrend to a new downtrend. This pattern is an indication of a financial instrument's SHORT-TERM outlook.

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Description


The Island Top occurs when the price "gaps" above a specific price range for a number of days and then is confirmed when the price "gaps" down below to the original range.


Island Top Short-term Pattern

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Statistics--Bottoms

Percent of successful formations – 85% Average rise of successful formations – 34% Likely decline – 20% Failure rate - 17% Average time to throwback completion – 9 days

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Statistics--Tops

Percent of successful formations – 77% Average decline of successful formations – 21% Likely decline – 10% Failure rate - 13% Average time to throwback completion –8 days

Island reversal

CHART EXAMPLE

island cluster