Island Reversal Dn

Definition

An Island Reversal price pattern occurs when two different gaps isolate a cluster of trading days. The pattern usually implies reversal and can apply to a bullish or bearish change.

The Island Reversal Dn indicator marks the high of any bar if two conditions are met:
1. Low is higher than the High of the previous bar;
2. Close falls within the lower PctRange % of the bar range.

An Island Reversal Down bar is similar to the Gap Up Bar except that an Island Reversal Down bar's Close must fall within the lower percentage of the bar.

Default Inputs

Length sets the number of bars over which to locate the highest High, for comparison to the Low of the possible island bar, 4 by default.

PctRange sets the percentage of the range of the bar, above the Low of the bar, in which the Close must be located, 30 by default.