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Replies to #34339 on lowtrade

lowtrade

11/20/12 4:58 PM

#34343 RE: floydianslips #34339

Island reversal patterns occur due to some major company failure. While retail wants things back up to normal, it can take months, if ever, for the company to do something or correct the problem.

I don't like Island Reversals, because they usually are long and drawn out.

The thing to watch for is break of the gap down top resistance. These normally form a channle at the bottom and need the same large volumes seen into them, out of them, to begin a positive climb above resistance into the gap area.

Just remember you need volume in = volume out.