Island clusters are identified by an exhaustion gap followed by a breakaway gap in opposite direction. They are powerful reversal signals

Conclusion
There is an old saying that the market abhors a vacuum and all gaps will eventually be filled. While this may have some merit for common and exhaustion gaps, holding positions waiting for breakout or runaway gaps to be filled can be devastating to your portfolio. Likewise if waiting to get on board a trend by waiting for prices to fi ll a gap just might mean you never participate in the move. Gaps are a significant technical development in price action and in chart analysis, and should not be ignored. Japanese candlestick analysis is filled with patterns that rely on gaps to fulfill their objectives.