Island Reversal are powerful reversal signals so as a swing trader I'm always searching these out and/or watching them form.
The most powerful Island Reversals generally occur around some sort of news event (or sometimes prior to a news event if Wall Street is in the "know") and typically leads to fairly violent initial move to the upside or downside.
What is...
SOMEONE DOESN'T WANT YOU TO SEE HOW RIGGED SILVER WAS IN 1980!
CURRENCYCOM REMOVED ALMOST 40 YEARS OF PRICE ACTION!
SEE PREVIOUS POSTS! LOOKING INTO IT FOR YOU GUYS!
An exaggerated bearish divergence occurs when price forms a clear top, while the technical indicator (in this case RSI) diverges and forms a lower high.
