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Island Reversal – Candlestick Pattern

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Island Reversal – Reversal Candlestick Pattern

An island reversal is a chart formation where there is a gap on both sides of the candle. Island reversals frequently show up after a trending move is in its final stages. An island reversal gets it name from the fact that the candlestick appears to be all alone, as if on an island. A key sign of a valid island reversal is an increase on volume on both the first gap, and then the subsequent gap in the opposite direction. An island reversal formation is often attributed to news driven events that occur in the pre-market or after-hours trading.

Island Top

Island Top

Island Bottom

Island Bottom

Alton Hill

Alton Hill

I am one of the co-founders of Tradingsim and an IT consultant who specializes in large scale Systems Integration projects. I have traded the markets actively since 2000 and believe that true trading mastery comes from practice . When I'm not working on a new day trading strategy, I enjoy spending time with my wife and 3 young sons.
Alton Hill

Comments

  1. Dhenuvakonda2001 says:

    its woring very fine it patten gives result of 10 % in iladn top but 5-8% retun in iland bottom formation
    regards
    d.nagaraju

  2. Dhenuvakonda2001 says:

    its workin very fine it patten gives result of 10 % in iladn top but 5-8% retun in iland bottom formationregardsd.nagaraju

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