Description
Island reversals are the more uncommon than Key reversals. However, they are more reliable. In case of an island reversal, after the appearance of an exhaustion gap, the gap is not filled immediately and is isolated by another gap. It can be interpreted both in ascending and in inclining trends. The more candles the island consists of, the stronger the signal. The formation signals a reversal correctly in 80% of the cases.
- Role: Reversal
- Expected trend: Neutral
- Previous tren: Neutral
- Reliability: High
- Pattern: Reversal
Island Reversal Example
