Definition
Bullish Belt Hold consists of one candle. This candle is usually a Bullish Marubozu Opening, which is typical on inclining markets. The share price starts to increase after the opening, despite the current trend. Then closes near the maximum. The longer the body of the Belt Hold, the larger the resistance in the current trend.
- Trend: Reversal
- Expected trend: Bullish
- Previous trend: Bearish
- Reliability: Low
- Type: Bullish
- Number: 1
Recognition
- The market is in a downward trend.
- The market opens with a gap in the trend’s direction, but the price increases rapidly during the day. Then closes close to the maximum.
- It is a white candle with a smaller shadow than the Bullish Marubozu Opening’s.
Interpretation
The market opens with a large gap relative to the direction of the trend. The first impression is that the inclining trend will rule the day. However, things change and the share price increases rapidly. This scares short position owners, who start closing their positions.
Important factors
The Bullish Belt Hold needs a verification on the next day. The confirmation could come from a white candle with an upward gap or a higher closing price.
