Bullish Belt Hold

A Bullish Belt Hold, referred to as “yorikiri” in Japanese, is a single Japanese candlestick pattern that indicates a potential reversal of the existing downtrend. Similar to the Marubozu candlestick pattern, the significance of this candle lies primarily in its size, as the shadows (or wicks) are either very small or completely absent.

This pattern appears after a downtrend and is relatively easy to identify, making it quite common. To recognize it, look for the following criteria:

• A downtrend must occur before the candlestick.
• Following a series of bearish candlesticks, a bullish (white) candlestick should emerge.
• The pattern consists of a long white candlestick with a short upper shadow (or no upper shadow at all).
• The candlestick should have no lower shadow whatsoever.

The Bearish Belt Hold pattern is the inverse of the Bullish Belt Hold, characterized by a single black candle that forms after an uptrend.

The opening price of the Bullish Belt Hold candle is at the low of the trading session. Throughout the session, the price increases, closing at (or near) the session highs, resulting in a white candlestick. The bottom of the candle indicates the opening price, the top represents the closing price, and the peak of the upper wick shows the highest price reached during the session.

This candlestick typically signals a trend reversal from bearish to bullish. To enhance the analysis of a Bullish Belt Hold candlestick, consider the following observations:

• The longer the candle, the more significant and powerful the potential reversal.
• To validate the signal, the pattern should be succeeded by a bullish candlestick.