Ps; this is basically the same chart HK & MPO have, but they haven't failed. NOT island reversals, which adds comfort on success. That's why I have them on strong watch for possible successful ascending triangle patterns. Been strong watching FNMA, but expected island reversal bottom channel won, as expected.
Island reversals are phycology/sentiment plays with phycology strength. When sentiment is as strong as the gap down, it will fill large gap above. Volume in/ volume out ! Sentiment needs to be strong to change phycology. Else the channel continues.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.