A cluster of candles isolated by a gap on each side: a gap in the direction of the trend, then a gap the other way. Traders who bought the island are trapped.
How to identify it
- Exhaustion gap in the trend direction
- One or more candles trade in isolation
- Opposite gap leaves the island stranded
Entry
Sell after the second gap holds and does not fill early.
Stop loss
Above the high of the island.
Target
The pre-island consolidation and below.
Invalidation
Price fills the second gap and trades back into the island.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your island reversal trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.