The Belt Hold candlestick pattern, or the Yorikiri, as it referred to in Japan, is a minor trend reversal pattern that signals a potential short term trend reversal.
The Belt Hold candlestick is a single candlestick pattern that closely resembles the Marubozu candlestick. There is a bullish and bearish version of this candlestick but this post will refer to the
The bullish Belt Hold candle should contain a large full body with the candle’s open at its low. The opposite is true of a bearish Belt Hold candlestick in that the open should be at the candles high.
Whether it’s bullish or bearish, the Belt Hold should have little to no upper or lower wicks.
A full bodied bearish Belt Hold forming at the top of an uptrend signals a potential reverse to the downside, while a bullish Belt Hold forming at the bottom of a down trend signals a potential reverse to the upside.
Because this candle requires a large full body, the bigger the actual candlestick is, the more valid the signal.
The Belt Hold pattern signifies a change in market sentiment. Bulkowski’s testing revealed that the bullish and bearish Belt Hold patterns are price reversal signals a solid 71% of the time, making it a single candle charting pattern that traders can not ignore.