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.
Investopedia Says:
When a stock indicates an uptrend, trades above the gap which occurs, then gaps back down and trades below the initial price, an island reversal has occurred.
Related Links:
Go beyond the basics! Learn to identify and trade island reversals, kicker patterns and more. Advanced Candlestick Patterns
