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Definition of 'Island 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.
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Investopedia explains 'Island Reversal'
When a stock indicates an uptrend, trades above the gap which occurs, then gaps back down and trades below the initial price, an island reversal has occurred.
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Go beyond the basics! Learn to identify and trade island reversals, kicker patterns and more.
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Take a leap of faith and follow your stocks with gap patterns.
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