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The Belt-Hold Line Candlestick Pattern

Belt-Hold Pattern

Bullish and Bearish Belt-Hold Lines

The Belt-Hold candlestick pattern (or yorikiri as it is known in Japanese) is considered a minor trend reversal pattern that can indicate a bullish or bearish trend reversal, depending on the nature of the pattern and direction of the trend in which it appears. The Belt-Hold pattern is a single candlestick pattern that is similar to a Marubozu candlestick in that it is has a large real body with little or no shadows, indicating the strength of bullish or bearish activity. The single Belt-Hold candlestick that appears in an uptrend is a potential top reversal pattern and the pattern is a Bearish Belt-Hold pattern. The bearish Belt-Hold Line consists of a single black candlestick that opens at or near its high and closes at or near its low, leaving very little upper or lower shadows. Conversely, a Bullish Belt-Hold pattern appears in downtrend and is a potential bottom reversal pattern. It consists of a single rising candlestick that also opens at or near its high and closes at or near its low. The length of these candlesticks indicates a potential change is sentiment, thus the pattern becomes more significant if depending on the size of candlestick in this pattern.

Both the bullish and the bearish Belt-Hold Lines are more reliable when they appear near market extremes as indicated by trend lines, support and resistance, pivot points and moving averages. They are also more significant when they form part of other candlestick patterns, such as the Dark Cloud Cover pattern or the Engulfing pattern.