Island Reversal: Bearish Flag

Abbreviation:
Category: Chart Pattern Identification
Input Parameters:

Name Range Default
High Price High
Low Price Low

 
Calculation:

If (High Price 2 periods ago < Low Price 1 period ago) and (Low Price 1 period ago > current High Price) then 1
Otherwise 0

 
Discussion:

Indicates the potential for an upturn in the market. Conceptually, the Bearish Island Reversal can be thought of as a pivot point top that requires the presence of a price gap. See Pivot Point: Top Flag for more details about pivot points.
 

Was this article helpful?

Related Articles