| Island Reversal Bullish Chart Pattern |
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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.
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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.
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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
CHART EXAMPLE
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