Forex Candlestick Chart Pattern – Belt Hold
Belt-Hold candlestick patterns (or yorikiri as they are known in Japan) are considered minor reversal patterns. This pattern may 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 similar to the Marubozu candlestick because it has a large real body with little or no shadow. This indicates the strength of bullish or bearish activity.
The single Belt-Hold candlestick that appears in uptrend is a potential upside trend reversal pattern and the pattern is called the Belt-Hold bearish pattern. The bearish belt-hold pattern consists of a single open (or bearish) single candlestick or near the high level and the close level is at or near the low level, resulting in very little shadow up or down.
On the contrary, Belt-Hold bullish pattern appears in downtrend and is a potential downward trend reversal pattern. It consists of a single candlestick which is also open level is located or near the low level and close level is located or near the low level. The length of this candlestick indicates a potential change in sentiment, so the pattern becomes more significant if it depends on the size of the candlestick on the Belt-Hold pattern.
Both Belt-Hold bullish and bearish patterns are more reliable when near extreme market levels as indicated by trend lines, support and resistance, pivot levels and moving averages. They are also more important as they form other candlestick patterns, such as dark-cloud-cover patterns or engulfing patterns.
This pattern is not or less popular among traders. In fact less popular with Marubozu. The difference is the formation of shadow in Belt-Hold pattern is more flexible or allowed on both sides. While Marubozu usually shadow only allowed in the appropriate direction.
However, most traders are all regarded as Marubozu. Perhaps because of the same effect or effect, the significance of the movement of the candle direction, usually as an indication of a trend reversal.