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Island

How to Island Reversal PatternGreetings, fellow traders! Today, we dive into the Island Reversal patterns, a fascinating subset of price gap structures. Understanding their intricacies can empower us to make informed and strategic trading decisions. Unraveling Island Reversals: Island Reversals materialize when prices find themselves marooned amidst gaps, isolated from preceding trends. Picture this: in a bullish rally, prices surge above the prior session's close, forming an upside gap. After a few sessions, a downside gap emerges, bringing prices below the prior close. This secluded price-range creates the Island Reversal setup, often heralding significant technical declines in bullish trends or robust rallies in bearish trends. The Influence of News and Volume: Island Reversals, intriguingly, are often the offspring of news-driven events. To validate these patterns, observe the volume – it should surge significantly on both sides of the gaps. Their rarity in the midst of a rally or descent underscores their potency as trend reversers post the second gap. Strategic Trading Approach: Post the reversal, enter a "short" trade below the low of the second downward gap in an uptrend. Conversely, in a downtrend, initiate a "long" trade above the high of the second upward gap. This tactical entry ensures you ride the wave of the emerging trend with precision. Strategically Placed Stops and Targets: Prudence dictates placing a "stop" order if the market closes above the high of the Island Reversal pattern for short trades or below the low for long trades. This precautionary measure safeguards your positions, preventing potential losses. As for targets, Island Reversals, being formidable trend indicators, often lead to substantial profits. Set your sights on key event-driven support or resistance levels, guiding your exit strategy. Island Reversal patterns hinting at impending shifts in market dynamics. By mastering these patterns and integrating them into our trading arsenal, we elevate our ability to navigate the market. Remember, fellow traders, every pattern tells a story; it's our job to listen, decode, and act. Happy trading!
Education
by Vestinda
Bitcoin hitting a possible bottom at $25k for 2021I have an indicator that is the Martin Island Sunset and I Believe they are using the 450 day moving average that is pictured by the colored blue MA. I have a hunch that with all the fud we have been seeing in news and all the lies by banking executives calling for lower btc prices, we could see a final capitulation price of $25,000 for btc. After we achieve this bottom we are back on track for the 2021 bull run. This is still a very likely scenario and everyone should be ready.
BNC:BLX
by altcoinb
2
Walmart Readying Itself for EMA Correction After Island ReversalNYSE:WMT has been beaten around lately after a report found they were mistreating a group of 178 female workers. After a gap down, more selling off, and then a rebound just above the widely used 200-EMA, it is now seemingly gearing up for a a bullish reversal out of an island reversal chart pattern. Green line: island reversal trajectory Orange rectangle: Gap zone with necessary breach for bullish confirmation. I would not enter a bullish position on NYSE:WMT without seeking this confirmation first.
NYSE:WMTLong
by DoozyTrader
AMD Continuation or Breakdown????From the Daily chart we can see a text book Double Bottom pattern emerge just before the breakout and continued uptrend begins. When we take a closer look at the hourly and 30 minute charts we can see two possibly three island reversals which make taking a trade extremely risky when a commodities price could gap down and leave us stranded. This will further complicate the support lines when this occurs because they become untrustworthy when panic selling begins. i have labeled a relatively safe support zone on the chart as long as we do not incur any catastrophic sell offs these should remain stable. Note that anywhere past the 21.69 support we could drop off to the last major support at 19.02. The good news is we have a beautiful triple bottom forming on the 30 minute chart followed by new highs. Along with an uptick in the crypto market and hopefully a renewed enthusiasm for crypto mining we may see a nice push into the mid 20's on this one. Price Targets @ 23.27, 23.80, 24.00(Mental Resistance), 24.51, 25.17 Look for this to break 23.27 and retest this as support for confirmation of continued upside. Keep a tight Stop Loss if you decide to take a trade on this to hopefully avoid getting stuck on a reversal island.
NASDAQ:AMD
by Crispier-Bacon