NASDAQ:SONO has a lot of Island gaps and another just in the past few months.
The compression of price into a sideways trend is a good pattern.
Also, the black candle that drops below the consolidation and the white candle the next day is a pattern to pay attention to. This means there is some hidden accumulation from Dark Pools at this new higher level of...
There is an interesting phenomenon that occurs often: when a gap down of this size occurs, followed by a bottoming action and a large white candle forms, this often becomes an island gap. HFTs that gapped the stock down gap it up again.
The fact that the gap down candle is a huge white candle for this chart indicates that the gap down is below fundamental values...
CSCO has been struggling with a weaker short-term bottom formation that has gapped several times to form Island Gaps. CSCO recently failed to break to the upside against weak to moderate resistance above the current price. The reason is that the giant Buy Side Institutions are not quietly accumulating CSCO at this time.
