Belt-Hold Lines

Forex Maniac > Japanese Candlestick Patterns > Belt-Hold Lines

Belt-Hold Lines is one-candle formation, that can have both Bullish and Bearish meaning.  Candle structure looks like neighbor candles holding the main candle by the waist. In Japan Belt-Hold Line has a name, borrowed from the Sumo wrestling, “Yorikiri”. Yorikiri means pushing the opponent out of the circle, holding him by the waist.

Structure

Bullish Belt-Hold Line represented by a long white (rising) candle, which opened on the bottom of the current trend and moving upward during the whole period. It is also called Bullish Chopped Candle. Such formation predicts downtrend reversal.

Bearish Belt-Hold Line is long black candle (falling candle), opened on the trend peak and going down during the whole period. Similarly, this figure predicts a possible reversal of the market. Also, this formation has a name Bearish Chopped Candle.

The longer Belt-Hold Line – the stronger it is. The rarer this formation – the greater its value.

Psychology

Belt-Hold lines structures are not considered to be the strong prediction patterns. Nevertheless, it could give the trader a clue of the market psychology. The appearance of the candle itself expects confirmation from the next candle. For the Bullish pattern, if next candle opens higher than the Open price of the Belt-Hold Line, the trader has confirmation of the trend reversal.

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