As of 12/20/2024   Indus: 42,840 +498.02 +1.2%     Trans: 15,892 +32.54 +0.2%     Utils: 986 +14.76 +1.5%     Nasdaq: 19,573 +199.83 +1.0%     S&P 500: 5,931 +63.77 +1.1%	YTD  +13.7%   0.0%    +11.9%    +30.4%    +24.3%	Targets    Overview: 12/12/2024     44,200 or 41,750 by 01/01/2025   16,100 or 17,700 by 01/01/2025   1,050 or 975 by 01/01/2025   20,500 or 19,300 by 01/01/2025   6,100 or 5,775 by 01/01/2025
Chart Pattern Indicator: on 12/5/24

As of 12/20/2024   Indus: 42,840 +498.02 +1.2%     Trans: 15,892 +32.54 +0.2%     Utils: 986 +14.76 +1.5%     Nasdaq: 19,573 +199.83 +1.0%     S&P 500: 5,931 +63.77 +1.1%	YTD  +13.7%   0.0%    +11.9%    +30.4%    +24.3%
Targets    Overview: 12/12/2024     44,200 or 41,750 by 01/01/2025   16,100 or 17,700 by 01/01/2025   1,050 or 975 by 01/01/2025   20,500 or 19,300 by 01/01/2025   6,100 or 5,775 by 01/01/2025
Chart Pattern Indicator: on 12/5/24

Bulkowski on Long Island Chart Patterns

Statistics updated on 12/18/2018. Rank updated on 7/26/19. As of 9/11/2020, I don't consider long islands a valid chart pattern.

For more information on this pattern, read Encyclopedia of Chart Patterns Second Edition, pictured on the right, pages 480 to 495. That chapter gives a complete review of the chart pattern, including tour, identification guidelines, focus on failures, performance statistics, trading tactics, and sample trade. Below is just a sliver of the information contained in the book.

This is not a new pattern, but one in which I coined the name to distinguish it from island reversals. With long islands, the gaps do not align. Long islands are a continuation pattern that perform best in bear markets.

Important Results Identification Guidelines Trading Tips Example See Also

Long Island Chart Pattern Example

Long Island Pattern: Important Bull Market Results

The above numbers are based on over a thousand of perfect trades. See the glossary for definitions.

* Note that the measure rule for long islands uses half the island's height.

Long Island Pattern: Identification Guidelines

More

Long Island Pattern: Trading Tips

Trading Tactic	Explanation	The Measure Rule
Measure rule	Compute the height from the highest peak (point A in the Measure Rule figure to the right) to lowest valley in the island (B) and divide by two then multiply it by the above 'percentage meeting price target.' Add the height to (upward breakouts) or subtract it from (downward breakouts) the closing price the day before the second gap. The result is the target price, C.
Short	Avoid short islands that appear well into the trend. They may signal a coming trend change.
Yearly middle	Avoid long islands with upward breakouts that appear in the middle of the yearly price range. They perform worst.
Height	Tall islands perform better than short ones.
Height, width	Long islands both tall and wide perform best for both breakout directions.

More

Long Island Pattern: Example

The above figure shows examples of long island chart patterns. The first begins with a breakaway gap at point C and ends the next day with an exhaustion gap at D. The next long island begins at A and completes at B.

-- Thomas Bulkowski

More

See Also

• Chart pattern review 5 A review of islands and measured moves.
• Is the long island really an island reversal?
• Gauging Gaps. This article fills in the gaps.
• Trend change detection using a triangle apex.
• Overlap. Does congestion before the breakout matter? Yes.

Press any key...no, no, no, NOT THAT ONE!