Island Reversal – Powerful Reversal Signal 🏝️📉📈

📊 The Island Reversal is one of the most powerful gap-based reversal patterns that marks a sudden shift in market sentiment. ✅ Formation: 1️⃣ A gap appears in the direction of the prevailing trend (up or down). 2️⃣ Price trades for a few sessions creating an “island” (a small cluster of candles isolated from the main price action). 3️⃣ Another gap appears in the opposite direction, leaving the island isolated. ✅ Meaning: Clear sign of exhaustion and trend reversal. 📌 Example: Stock gaps up from ₹680 → ₹710, trades between ₹710–₹720 for 3 sessions, then gaps down to ₹690 → Island Reversal → bearish reversal confirmed. 🧠 Tip: Volume surge during the second gap strengthens the signal.