Belt Hold Candlestick Pattern
This Japanese candlesticks pattern can be bearish or bullish and it is not considered to be the most reliable pattern available to traders. For this reason a confirmation the following trading day is absolutely required.

Bearish Belt Hold Candlestick
This candlestick pattern forms during an uptrend and can signal a reverse in investor sentiment. When this signal occurs the atmosphere has been bullish with the first day opening higher than the previous day’s close. A black candlestick appears as the day gaps up but prices end up moving closer to the low for the day. It doesn’t necessarily close at the low for the day but near its low. There is also a short lower shadow and no upper shadow on the black candlestick.  The reversal of the market sentiment from bullish to bearish causes the bulls to sell many positions which strengthen the reversal. Confirmation is required with this pattern and should be either a large gap down, a lower close on the following trading day, or a black candlestick.

Bullish Belt Hold Candlestick
This candlestick pattern forms during a down trend and also can signal a reversal in investor sentiment. When this signal occurs the atmosphere has been bearish and the first day’s opening price is at it low for the day. This opening price is significantly lower than the closing price for the day. In other words the day gaps down; the market opens at its low, and then the price goes up during the day as it closes near the day’s high. Again, wit this pattern the day’s closes near the day’s high but necessarily at the day’s high. This pattern results in a long white candlestick with a short upper shadow and no lower shadow. This pattern indicates a rally for the bulls and lead to the covering of many short positions. Confirmation is required with this pattern and should either be a large gap up, a higher close on the following trading day, or a white candlestick.

Japanese Candlesticks, such as the Belt Hold candlestick, are the fastest way for new investors to quickly and accurately read stock charts. Once you understand how to read stock charts and are comfortable with the major candlestick signals, expand your expertise by learning the various secondary Candlestick Patterns . Combine these with your favorite Technical Analysis indicators, such as the moving average , and you have the perfect trading arsenal for evaluating stocks, currencies, commodities, or Exchange Traded Funds .

Please continue your candlestick pattern education and read about the three river bottom pattern.