Bearish Belt Hold Candlestick

Bearish belt hold is a trend-reversal candlestick pattern indicating the beginning of a new downtrend after a significant uptrend. It is a single candlestick pattern formed of a long black (colored or bearish) candlestick, which is an opening marubozo (have no upper shadow). Bearish belt hold candlestick occurs frequently and is considered less reliable and thus confirmation of trend change is necessary.



The requirements of bearish belt hold candlestick are,

• The candlestick should form after a significant uptrend.
• The price should open above a significant gap (exception: forex charts) and the opening price should be the highest price of the day.
• The day should be noticeable with high bearish activity and the price should close at or near the lowest price of the day.

Bearish belt hold candlestick appears when bulls fail to keep the upward trend (often above a significant resistance). Many traders begin to sell-off their positions and this mark the beginning of a new downtrend.

Reliability of bearish belt hold candlestick is low; reliability increases with increase in real-body of the bearish candlestick, increase in trading volume and with weakening of the previous uptrend. The confirmation of trend-reversal can be a bearish candlestick, a lower gap opening or a lower close on the next trading day. Traders are also used to use other tools and indicators confirm price trends and to enter and exit trades.

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