Bullish Belt Hold
The bullish belt hold is one of the better performing candlesticks that I researched.
It acts as a bullish reversal often, placing its rank at 11 out of 103 (where 1 is best) and
it occurs frequently in nature (ranking 22). Overall performance is well back of the pack, though: 62.
That is because the return over 10 days is lousy when compared to other candle patterns.
How to identify
- Long white day where the open is equal to the low.
- No lower shadow.
A significant gap down occurs. The remaining price action for the day occurs to the upside. This triggers a buying spree.
Shorts cover their positions due to concern over this price action.