Type “Island bottom” into your favorite search engine, and chances are you’ll get something other than the chart pattern that’s the subject of this episode. Island bottoms — along with island tops — are rare… But when you are able to spot them, they have an amazing level of accuracy.
In a recent study, the island bottom was found to have a success rate of 85%, versus a failure rate of 13%. For island tops, the success rate was 77% versus a failure rate of 10%.
Intrigued? Well, keep reading and watch the video for more info.
In this episode, you’ll learn:
- What constitutes an island bottom (1:15)
- What constitutes an island top (2:25)
- The statistical success rates of island bottoms and tops — along with the size of the average profit made trading them (3:06)
We also outline what island bottoms and tops look like using simple line-art graphics, and explore the “narrative” of both chart patterns so that they’re easy to understand.
By mastering the island bottom and top chart-pattern formations, life really can be a beach. Although the patterns are rare, they’re easy to spot when the do occur, and they typically produce big gains for savvy traders.
CEO, Wealthpire Inc.
P.S. Next week I’ll show you how to become one with the Force… The Force Index, that is!