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Island Top Chart Pattern

Island Top Short-term Pattern | Implication (Island Top) | Description (Island Top) | Statistics (Island Tops)

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--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

An Island Top Chart Pattern Example

Island reversal

An Island Top Chart Pattern Example

island cluster