Last week saw the largest decline in markets since the rally of the March low and in doing so created an Island Reversal Pattern which is a bearish type of chart pattern. Island Reversals form when price creates a gap up during an uptrend, holds above the gap level for a few days, and then reverses back to the downside while creating another gap on the move down...
We might se a highland top reversal pattern on the Nasdaq in the coming hours or days. This would be the beginning of a more mid-term leg down. Also note the Kumo is very narrow which would show very little resistance to the prices. This pattern will be confirmed if prices gap down to form the actual island.
1. Divergence in the RSI Indicator 2. Divergence in the MACD Indicator 3. Forming of a Head and Shoulders Pattern. 4. Clearly forming of a Elliot Wave. 5. Volume trading has been decreasing significantly. 6. Island reversal on the top 7. The rebound channel was broken Do you need more hints? Or is it already clear? Please comment what you think.
Now, this one is the flawless pattern! Island Reversal on SLV Bullish on silver, long term.
This pattern looks like an Island Reversal. The trend should be down just before the island for the pattern to be flawless. This is not the case, but it gives the feeling that investors are letting dark views behind them for now.
It seems like a good annual report triggered hype around Tesla. The chart forms island reversal with 3 price gaps. I will wait for movement start cause I don't know for how long it continues but volume started decreasing.
SDRL has been in a large downtrend, recently it has seen a large price pump, this may be due to fundamentals however we will stick to charts. A short opportunity has opened with the recent pump, touching the downward trendline and indicative of a possible bearish reversal.
Bloom has been on a massive / fast paced run since October, however a clear downtrend is still present, and the success (breaking the downtrend) or failure of this bull flag, will determine if the stock rises or falls. An island top is also present with a clear price gap.
Ubisoft has been stuck in a downtrend for awhile now, an initial island can be observed and linked to the current downfall of this stock. Currently the price is trading within a downtrend, where a second island bottom is present, which may lead to a reversal at the immediate support zone. Overall the bearish momentum, outweighs the possible bullish factors.
KHC has formed left shoulder and head, time will tell if the right shoulder is formed. Possible island bottom also. Rising MACD shows promise also.
Spotify is showing mixed signals with the formation of a diamond top which is indicative of a bearish reversal, evident on the chart. Also, formation of an island top which are a quite reliable bearish reversal chart pattern. The uncertainty in this chart may be evident to investors which choose to capitalise on this or sit out. Personally I use Spotify myself..
AKRX can be observed as detrended from its major trendline formed. However this may be recovered with the formation of an island bottom just below the trendline, potentially pushing the price back up into the buy zone. Islands are very predictable chart patterns of reversals in bullish markets (23/24) according to ‘Encyclopedia of chart patterns’.
Achillion has show some nice symmetry, this is mainly a result of the formation of a diamond and island bottom. A golden cross can also be observed increasing the bullishness of this chart. A recent merger has also been announced.
Clear island top and bottom, this island bottom represents a great entry point for long positions, possible rejection at MA level, leading to a cup and handle, islands represent a reversal point in the market. They are like a gem.
Islands form when 'prices gap up to the formation and then gap down at the same price level' this is what traders would call an island top, where the initial breakout is upward, forming the island seen, and then a drop back down to the water follows so to speak. With a 23/23 success rate in a bull market according to 'Encyclopedia of chart patterns' islands are a...
CNI has an Island Reversal pattern from a small gap down in early October to the gap up a couple of weeks later. Bullish momentum has continued with a couple of strong volume bullish days to show the transition. If the price can hold above $86.60 then the bullish momentum should continue.
ZS had a gap up due to earnings back on March 1st. The stock saw a rise in price within a bullish price channel but was creating a bearish divergence with the RSI indicator. Even with the pullback, the price remained in the bullish channel until it broke down in mid-August. Another earnings report in September led to a gap down that created an Island Reversal...