A trading range where there is an exhaustion gap up, then prices trade in a narrow range for a few days, then there is a breakaway gap down. This leaves a sort of island of prices in the middle. The reverse happens at an island bottom reversal. E-K L-O P-R U-Z
Created when the market "gaps" up, trades for a few days, and then "gaps" down later. A reliable formation, but there is no basis for projecting the emerging price move.
a pattern consisting of two gaps in opposite directions
a single isolated price bar with a gap up on one side and a gap down on the other
A trading range where there is an exhaustion gap down, then prices trade in a narrow range, then there is a breakaway gap up. This leaves a sort of island of prices in the middle. If the trading range is only one day, it is considered a one day reversal.
An occurrence in technical analysis where a stock price will gap up/down, trade higher than this price, and then gap down/up below the initial price.