Island Reversal Tops   

Prices gap up to the formation then gap down at the same price level, leaving an island.

Tops have prices that lead up to the left gap and fall away from the right gap.
 
Example
 
graphic
 
Statistics
Percent of successful formations – 77%
Failure rate – 13%
Average time to throwback completion – 2 hours
 
Trading tactics
Compute the formation height by subtracting the lowest low from the highest high in the formation. Subtract the difference from the lowest low for island tops. The result is the target to which price should fall.