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.


When a stock indicates an up trend, trades above the gap which occurs, then gaps back down and trades below the initial price, an Island Reversal has occurred.



Introduction to Technical Analysis - Here is an easy-to-understand tutorial on the various tools used in technical analysis, including moving averages, RSI, Bollinger bands, stock chart patterns, and much more.
Related Terms

Gap

Technical Analysis

Word Search:

Categories