Bullish Belt Hold Line Candlestick
A belt hold line is a single candlestick pattern. A bullish belt hold occurs when prices open on the low of the day and then immediately move higher creating a long bullish candlestick. The bullish belt hold is also referred to as a white opening shaven bottom.
Bearish Belt Hold Line Candlestick
A bearish belt hold occurs when prices open on the high of the day and then move down for the remaining period, thus creating a long bearish candlestick. The bearish belt hold is called a black opening shaven head.
Belt Hold Lines Forecasting Future Uptrends and Downtrends
According to Nison (1991, p. 94), if a bullish belt hold occurs at low prices, it forecasts a rally; likewise, if a bearish belt hold occurs at areas of high prices, it signals a top reversal; moreover, the longer the height of the belt hold candlestick, the more important it becomes. It should be noted that if prices fall below the open/low of the bullish belt hold, then the pattern is void and similarly, if prices rise above the open/high of the bearish belt hold, then the pattern is void.
Bullish Belt Hold Candlestick Chart Example
The chart above of the Silver ETF (SLV) illustrates a bullish belt hold off of an area of support shown in the chart above with a blue line. The day of the bullish belt hold opened with a gap down into the area of resistance. Immediately, bulls jumped into the market and pushed prices higher and created a large bullish candlestick.
Bearish Belt Hold Candlestick Chart Example
The chart above of the Russell 2000 Index ETF (IWM) is an example of a bearish belt hold and is also a bearish engulfing pattern. The open of the bearish belt hold candlestick is a gap up from the previous day’s close. However, the prices after the open immediately fall downward and close creating a large bearish candlestick that eliminates the past two days’ gains and begins a downward trend.
- Nison, S. (2003) The Candlestick Course. Hoboken: John Wiley & Sons.
- Nison, S. (1994) Beyond Candlesticks: New Japanese Charting Techniques Revealed. New York: John Wiley & Sons.
- Nison, S. (1991) Japanese Candlestick Charting Techniques. New York: New York Institute of Finance.
- Rhoads, R. (2008) Candlestick Charting For Dummies. Hoboken: Wiley Publishing.
- ThinkorSwim. (2011). ThinkorSwim Resource Center: Candlestick Patterns Library.