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island reversal

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Financial Dictionary

Island Reversal

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 Commentary

When a stock indicates an up trend, trades above the gap which occurs, then gaps back down and trades below the initial price, an Island Reversal has occurred.

Related Links

Introduction To Technical Analysis

See also: Gap, Technical Analysis

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