BEARISH
BELT HOLT
| Type: | Reversal |
| Relevance: | Bearish |
| Prior Trend: | Bullish |
| Reliability: | Low |
| Confirmation: | Required |
| No. of Sticks: | 1 |
Definition:
The Bearish Belt Hold Pattern is a single candlestick
pattern and it is basically a Black Opening Marubozu
that occurs in an uptrend. The pattern shows that the
day opens on its high, it then rallies against the trend
of the market, and then closes near its low but not
necessarily at its low. Longer bodies for Belt Hold
are indicative of more resistance to the trend they
are countering.
Recognition Criteria:
1. There is an overall uptrend in the market.
2. The day gaps up and prices open on their high but then prices move down closing near its low for the day.
3. We then see a black body characterized by the absence of upper shadow, which is called a Black Opening Marubozu.
2. The day gaps up and prices open on their high but then prices move down closing near its low for the day.
3. We then see a black body characterized by the absence of upper shadow, which is called a Black Opening Marubozu.
Explanation:
We have a market that is trending up when a significant
gap in the direction of trend occurs as the day opens.
However; then prices reverse direction and all further
price action of the day is the opposite of the previous
trend. Such a move causes concern among the bulls and
leads them to sell many positions. This strengthens
the reversal and turns into a sell-off.
Important Factors:
A confirmation of the trend reversal with either a
black candlestick, a large gap down or a lower close
on the next trading day is required.
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