With a gap up on Monday and another on Wednesday, the Finance SPDR (XLF) formed two island reversals over the last three weeks. The first island formed on Friday-Monday (red circle). The second island formed from 21 to 29 November (blue oval). Notice the gaps on either side of these islands.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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