For a better understanding of this article, you should already know what Japanese Candlesticks are and all their features; for this reason, we suggest you to read this introductory article to Japanese Candlesticks: Japanese Candlestick Chart ( So that you can understand also the Ratings given to the Candlestick Patterns for the “quality” of the signal and for their frequency to “appear” on Charts).
Let’s analyse now the following Candlestick Pattern: “Belt Hold Line Pattern”.
Belt Hold Line Pattern
– Normally it should be a signal of reversal of the current Trend.
– You can find it in the variants: Bullish and Bearish, depending on the Trend in which is located.
– The longer the candle is, the more reliable the signal becomes.
Bullish Belt Hold Line
– It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern.
– The Open of the Candle coincides with the Low of the Candle.
– Is a long and white Candle, with a short Upper Shadow and no Lower Shadow.
Bearish Belt Hold Line
– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern.
– The Open of the Candle coincides with the High of the Candle.
– Is a long and black Candle, with a short Lower Shadow and no Upper Shadow.