Read below why still you should not act on this pattern and wait till pattern to take shape completely.
Now some theory on Island reversal: I am posting sample charts showing this pattern.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgAQ9yexv72XepvFbsR2-3RvLM8rK-_csaHETp7RVeqJ7tKm9FP7Nq6kAK6rsRCGkvGQJ27MlpxBovCLJMm9VTrOFOfqrxH756XH01Exlu7CaccL6usEHGxFQLHM6jJeewemHU-K4XU-Ro/s320/island%2520cluster.png)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSOHETH1nVHot2xuQ-zR_5gEcd9XkTvwMqcOVU0w7zrN5f9_ghh9J6F5kup8b5jOIidGauE1ujTukZFLD5DsyjiWZhnDUSc5Op6FH66OErbF7o21E3JIlPcRpqyVCqfDpN_TT0s6y38yQ/s320/4196cca0.png)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfCox7RZWteO90u76XubPPvol0QgARX6Fqdqi2SAmvSB97UPMrutF0abpBhJT-oQ1Zj-CnOhw3Udiv2aqjetamDatbb55scVMmnNSwnD9wnExG5QggxTKZ0LBta1EMthC6CVS5ghpHGLA/s320/ibexample.jpg)
You can see why islands do not work well. This one shows price moving up at B and then reversing, throwing back to the breakout price and continuing lower, ending well below the bottom of the island. Throwbacks and pullbacks hurt post-breakout performance. Since throwbacks and pullbacks happen so frequently, so you can wait for them to complete before taking a position.
Read more on Island reversal pattern here and here and here
Read more on Island reversal pattern here and here and here
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