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Bearish Belt Hold
Bearish Belt Hold
Bearish Belt Hold is a single candlestick pattern, basically, a Black Opening Marubozu that occurs in an uptrend. It opens on the high of the day, and then prices begin to fall during the day against the overall trend of the market, which eventually stops with a close near the low, leaving a small shadow at the bottom of the candle. If longer bodies characterize the Belt Hold, then the resistance they offer against the trend will be even much stronger.
How to identify
- Long red day where the open is equal to the high.
- No upper shadow.
Psychology
A significant gap up occurs. The remaining price action for the day occurs to the downside. This triggers new short positions to be taken. Concern over this price action re-enforces the selling.
