The Long Island Pattern

Updated October 23, 2026

The long island is a continuation pattern defined by two price gaps in the same direction, separated by a period of consolidation. Because it is built from gaps, the entry and stop levels are unusually precise. Updated September 2026.

Long Island Pattern

How the pattern is structured

• Type: continuation, not reversal, despite the island reversal name often applied to the shorter version

• First gap: price jumps in the direction of the existing trend

• Consolidation: price ranges sideways, forming the island body

• Second gap: price jumps again in the same direction on increased volume

• Where it appears: most commonly in stocks, occasionally in commodities

• Minimum gap size: Bulkowski found gaps must exceed a threshold to qualify

• Key measurement: island height and width determine reliability

The bullish long island

In a strong uptrend, concentrated buying causes the price to gap upward, leaving a clear space on the chart. Price then consolidates sideways, forming the island body.

Bullish Long Island Pattern

A second upward gap follows, accompanied by an increase in volume. This is the signal that the uptrend is resuming rather than ending.

Entry comes after the consolidation and the second gap. Watch the first candle after the second gap: if it forms a continuation candlestick pattern, that confirms the setup.

Profit for my efforts

Bullish Long Island Pattern

• Entry: above the first candle following the second gap, once it closes

• Stop loss: at the far end of the second gap, below the first candle after it

• Tighter alternative: slightly below the entry candle's low, improving the risk-to-reward ratio at higher risk of being stopped out

• Confirmation: check candlestick patterns on lower timeframes, continuation patterns strengthen the case

The gap itself is what makes the stop placement reliable. A gap is an area with no trading, so price returning through it signals that the buying pressure which created it has failed.

The bearish long island

The bearish version is structurally identical, mirrored. Broad selling produces a downward gap, price consolidates, then a second downward gap forms on rising volume.

The 1-hour timeframe

Higher prices and profit

How to trade on a Bearish Long Island Pattern

Heavy losses afterward

If you already hold the stock, the second gap is the exit signal. Money management matters more here than pattern precision: continuing to hold through a confirmed second gap is how a manageable loss becomes a large one.

One correction to the original version of this article, which stated that short positions are not possible on the stock market. They are: most brokers offer short selling on liquid stocks, subject to margin requirements and borrowing availability, and CFDs provide short exposure without borrowing the underlying share.

• Entry: short after the first candle following the second gap closes, once both confirmations are present

• Stop loss: at the near end of the second gap, or above the entry candle's high for a tighter version

• Exit: take partial profit as price approaches the measured target rather than holding for the maximum

What the research shows

Thomas Bulkowski produced statistical work on this pattern, and his findings are specific enough to use as filters.

• The taller the island, the better the pattern performs, in almost all cases

• Tall and wide islands work best for the bullish version

• Tall and thin islands work best for the bearish version

• The price change across each gap must exceed a minimum threshold to qualify

On maximum performance, he found the bullish long island moves up around 31% from the second gap at its best, while the bearish version declines roughly 22% before a 20% retracement.

Price moves up

The target formulas

For the bullish pattern: take the closing price before the second gap, then add a proportion of the island height, measured as the difference between the island's highest and lowest price.

For the bearish pattern: take the closing price before the second gap and subtract the same calculated amount.

Bearish long island pattern

These targets are deliberately conservative relative to the maximum moves recorded, which is the point. A measured target that is reached most of the time is more useful than an optimistic one reached occasionally, and nothing prevents holding part of a position beyond it with a trailing stop.

Practical notes

• Verify both gaps meet the minimum size threshold before treating the setup as valid

• Check that volume increased on the second gap, without it the pattern is weak

• Measure the island height first, it determines both reliability and target

• The pattern is most common in stocks, where overnight gaps occur naturally, and rare in forex which trades continuously

• Practise on historical charts before trading it

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Long island pattern: frequently asked questions

Is the long island a reversal or continuation pattern?

A continuation pattern. It signals the existing trend resuming after a consolidation, not a change of direction.

What defines the pattern?

Two price gaps in the same direction separated by a sideways consolidation, with the second gap accompanied by increased volume.

Where should the stop loss go?

At the far end of the second gap. A gap is an area with no trading, so price returning through it invalidates the setup.

Which islands perform best?

Taller islands perform better in general. Tall and wide suits the bullish version, tall and thin suits the bearish version.

Can I short the bearish version?

Yes. Short selling is available through most stock brokers subject to margin and borrowing availability, and CFDs offer short exposure without borrowing shares.

Does this pattern appear in forex?

Rarely. It depends on price gaps, which occur naturally in stocks overnight but not in a continuously traded market.