In the realm of finance, we often encounter the concept of trading ranges and gaps. Let's delve deeper into one particular scenario where an exhaustion gap up is followed by a period of confined trading, only to be followed by a breakaway gap down. This creates a unique "island" of prices in between. Similarly, we can observe the opposite phenomenon in an island bottom reversal. These patterns have significant implications in the world of trading and investing. Let's explore them further.
