Define island tops and bottoms with the same range test
Arthur Hill describes the bullish sequence as a gap down, consolidation and a matching gap up. The following stricter measurement convention makes the isolated area testable. Let P be the bar immediately before the island, E the exit bar, and I all island bars between them. I-low is the lowest low in I; I-high is its highest high. All bars must be consecutive in the selected chart series.
- The inequalities are strict: equal prices touch and leave no gap. A minimum gap in ticks can be added as an explicit filter, but it changes the sample.
- Checking every island bar prevents an interior wick from crossing the supposed empty band. Two adjacent-bar gaps can exist without isolating the whole cluster.
- For a repeatable context rule, this teaching example requires P-close above its close 20 bars earlier for a top, or below it for a bottom. That simple comparison is a chosen filter, not a complete trend definition or an optimized setting.
| Check | Island top | Island bottom |
|---|---|---|
| Context | Prior advance | Prior decline |
| Entry gap | First island low > P-high | First island high < P-low |
| Exit gap | E-high < last island low | E-low > last island high |
| Shared empty interval | max(P-high, E-high) < I-low | I-high < min(P-low, E-low) |
| Time of confirmation here | Close of E, with all tests still true | Close of E, with all tests still true |