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Pattern Types
Often, one of the following patterns as influencing the price action of a stock or market covered in AvidTrader research. Click on any pattern of interest for more information about its characteristics, its stages and real examples:
Channel
Double Bottom, Double Top
Head & Shoulders
Island
Rounding Bottom, Rounding Top
Symmetrical Triangle
Ascending Triangle
Descending Triangle
Complex Triangle
Trendline Touch
Wedge
Pattern Stages
Breaking
Consolidating
Correcting
False Break
Trending
Fallen Star
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Islands Patterns
ISLANDS are relatively rare, but patterns that are mistaken for ISLANDS are not. The pattern doesn't just gap into the ISLAND, it also gaps from the ISLAND back into the prior trading range. Reversing into the gap, instead of beyond it, only mutes the reversal's effects.
Volume tends to be lackluster prior to the gap that starts the ISLAND. The trend is not finished, but buyers seem to be. As a consequence, the ISLAND fails to generate sponsorship for its attempt to reinvigorate the trend.
The gaps make the ISLAND difficult to trade. The pattern's attractiveness is mainly in its ability to clearly identify that the trend has reversed.
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