Island Reversal Up
From MultiCharts
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.
Definition
The Island Reversal Up indicator marks the high of any bar if two conditions are met:
- High is less than the previous bar's Low.
- Close falls within the upper PctRange % of the bar range.
An Island Reversal Down bar is similar to the Gap Down Bar except that an Island Reversal Up bar's Close must fall within the upper percentage of the bar.
Default Inputs
Length( 4 ) sets the number of bars over which to locate the lowest Low, for comparison to the Low of the possible island bar, 4 by default.
PctRange( 30 ) sets the upper percentage of the bar range, above the Low of the bar, in which the Close must be located.
