Back

Definition

 

Bearish Belt Hold consists of a Marubozu Black Opening candle when the market is in an ascending trend. The share opens above the trendline, but starts falling immediately and closes near the daily minimum. The longer the body of the Belt Hold, the stronger the resistance of the trend.

  • Trend: Reversal
  • Expected trend: Bearish
  • Previous trend: Bullish
  • Reliability: Low
  • Type: Bearish
  • Number: 1

Recognition

  • The market is in an upward trend.
  • The market opens with a gap in the trends direction, but the price starts falling immediately and closes around the daily minimum.
  • The formation includes a Marubozu Black Opening, which is a black candle with only lower shadow.

Interpretation

The market opens with a gap in the trend’s direction. Then the price starts falling which is against the trend. Long position owners become uncertain and close their positions. This reversal can trigger a selling wave.

Important factors

The formation must be confirmed. It can come from a black candle with a downward gap or a lower closing price.