I have a fairly good idea of what a textbook "island reversal" should look like, but then I often find these islands on charts with a varying number of candles in the islands I am able to draw. Sometimes they are just three of four, but also as many as up to fifteen. The chart where I found the most islands over the last 12 - 15 months, and tweeted it the other day, was the #Nifty50. Now I also see that #Apple also has quite a few of them.
The most obvious thing I have seen so far is that it seems that these island mostly appear at turns, i.e. on either side of the highest or lowest candle, there will be a gap between two successive candles. If I have to say, from my observations only, it seems as if these islands are found more at top than at bottoms. Further it seems that in most cases after these islands were formed, a fairly big drop in price followed. There are the few exceptions.
Now I see that #Apple again has an island around the recent July top. The price came back up quite some already, but will the previous high be exceeded? Very interesting is the fact that three more members of the Magnificent 7,
TSLA
,
NFLX
and
MSFT
, are also sporting these islands around the recent tops, all formed on 18 or 19 July 2023.
This is something I will be watching with great interest, as it seems to tie in with other models at hand.
The most obvious thing I have seen so far is that it seems that these island mostly appear at turns, i.e. on either side of the highest or lowest candle, there will be a gap between two successive candles. If I have to say, from my observations only, it seems as if these islands are found more at top than at bottoms. Further it seems that in most cases after these islands were formed, a fairly big drop in price followed. There are the few exceptions.
Now I see that #Apple again has an island around the recent July top. The price came back up quite some already, but will the previous high be exceeded? Very interesting is the fact that three more members of the Magnificent 7,
TSLA
,
NFLX
and
MSFT
, are also sporting these islands around the recent tops, all formed on 18 or 19 July 2023. This is something I will be watching with great interest, as it seems to tie in with other models at hand.