Bullish Belt Hold Candlestick Pattern
The Bullish Belt Hold candlestick pattern is a bullish reversal candlestick pattern that near or at the end of a downtrend and signals a reverse in investor sentiment. The candlestick pattern is easily identified due to its lack of a lower shadow.
When a Bullish Belt Hold candlestick develops, it means that buyers have had control of the share price for the entire trading session as the share price never got lower than its opening share price.
Since the trading session open, the share price has only pushed higher and that's why there is no lower shadow for a Bullish Belt Hold candlestick pattern. The buyers have been in control for the entire trading session.
Taken alone, the Bullish Belt Hold candlestick is not the most reliable of trend reversal signals. However, when it is combined with another bullish reversal candlestick pattern, like a Piercing candlestick pattern, the likelihood that the downtrend is over and an uptrend will resume is increased.
Listed below are the requirements for a Bullish Belt Hold candlestick pattern.
- It can be either a bullish reversal candlestick pattern or part of a bullish continuation candlestick pattern
- It has a shaven bottom, meaning it has no lower shadow or the lower shadow is minuscule in nature
- The share price should close at or near the highs for the trading session
- Most have green colored real bodies, however in certain instances a Bullish Belt Hold candlestick could have a red colored real body
Characteristics & Observations
Listed below are some of the characteristics of Bullish Belt Hold candlestick patterns, as well as some of my observations I have noticed with the pattern over the years......
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