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Intermarket analysis: The analysis approach that takes into account the price action of related market sectors such as the currencies, commodities and bonds on top of the stock market. International markets are also included. This approach is based on the premise that all markets are interrelated and have an impact on each other.


Island reversal: A trend reversal signal, the Island reversal pattern is formed with a combination of an exhaustion gap in one direction and a breakaway gap in the other direction normally within a few days. For example, in an uptrend, when the prices gap upward and then only to trade sideways for a few days before gapping downward leaving spaces on either side of the few trading days and thus completing the pattern.

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