Belt Hold Pattern: Spot Powerful Single-Candle Reversals
What Is Belt Hold?
Single candlestick reversal at trend extremes. Bullish: opens low, closes high. Bearish: opens high, closes low. Strong conviction signal.
Bullish Belt Hold Formation:
After downtrend, opens at session low with gap. Strong buying closes near high. Minimal upper shadow. Bears exhausted completely.
Bearish Belt Hold Formation:
After uptrend, opens at session high. Relentless selling closes near low. Minimal lower shadow. Bulls exhausted, bear dominance emerges.
Trading Strategy & Confirmation:
Entry: above high (bullish) or below low (bearish). Confirm with 2x volume, support/resistance. Stop-loss below/above candle extremes respectively.
Key Tips & Limitations:
Gap opening enhances reliability significantly. Best in trending markets. Combine with indicators. False signals without volume. Single-candle weakness.