Bearish Belt Hold

The Bearish Belt Hold is a double candlestick pattern that forms during a downward trend.  A bearish reversal is expected when this occurs

Bearish Belt Hold

The Bearish Belt Hold is a double candlestick pattern that forms during a downward trend.  A bearish reversal is expected when this occurs


Bearish Belt Hold Identification

The 2-day Bearish Belt Hold pattern starts following a stretch of bullish days.  Day 1 is bullish but is followed on Day 2 by a bearish candlestick.

The opening price, which becomes the high for day 2, is higher than the close of the previous day.  The stock price declines throughout the day, resulting in a long bearish candlestick with a short lower shadow and no upper shadow.

Bearish Belt Hold candlestick pattern
Bearish Belt Hold candlestick pattern

Interpretation of Bearish Belt Hold

The Bearish Belt Hold often signals a reverse in investor sentiment from bullish to bearish. However, it is not considered very reliable as it occurs frequently and is often incorrect in predicting future share prices. As with any other candlestick charting method, more than two days of trading should be considered when making predictions about trends.

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