Bullish Belt Hold

The bullish belt hold is a stock maket reversal signal. It consists of only 1 candlestick, but should occur after a downtrend in the markets.

The stock starts off in a downtrend. One day the stock gaps down at the open. But instead of going lower the stock rises and goes a significant amount higher then it’s open. The stock also should not have much if any downward shadow. It is ok to have a little bit of an upward shadow.

Why does the bullish belt hold work? When the stock gaps down and starts heading up it signals the bulls are saying enough is enough. When it closes high above the open it confirms this theory.

Other Candlestick Patterns

There are two kinds of candlestick patterns. Those that signal a trend reversal and those that signal the current trend will continue. By learning about these different candlestick patterns you can get some knowledge on how to predict the price movements of a stock. Here are some examples of other patterns that can form in the market.

Bearish Advance Block - This is a bearish indicator that signals an end to an uptrend

Bearish Breakaway Pattern - This is a trend reversal pattern occurring at an uptrend

Marubozu - This is a 1 day pattern which normally occurs in an uptrend and signals that the bulls are in control