Island Reversal Pattern

The Island Reversal pattern is when increased distributions in overnight activity cause gaps up and eventually volume exhaustion a second gap down forming an island of candles.

The Island Reversal can be Bullish (inverted island) or a Bearish Island and is preceded by lengthy trends with a reversal trend the other way.

No real profit targets for the island reversal. I would just use the island as a head as it seems to fit the profile of a head and shoulders pattern or double top / bottom.

Island Reversals are not common and traders are mixed on the results.

Credit to Vixtine for island reversal.