Introduction
Bearish Belt hold lines is a one day candlestick pattern. It is a single candlestick pattern that occurs during a uptrend and signifies a potential reversal or continuation of the bearish trend.
What is Bearish Belt Hold Lines Candlestick pattern?
A bearish belt hold occurs when prices open on the high of the day and then immediately move lower creating a long bullish candlestick. The bullish belt hold is also referred to as a white opening shaven bottom.
Why is Bearish Belt hold Lines Candlestick pattern important ?
The psychology behind the bearish belt hold line pattern is as follows:
- Opening Price: The pattern starts with a bearish candle that opens at or near the high of the session, indicating selling pressure right from the start. This suggests that bears are in control of the market sentiment.
- Selling Pressure: Throughout the session, sellers continue to dominate the market, pushing the price lower. The candle’s body remains bearish, indicating sustained selling pressure and a lack of buying interest.
- No Lower Shadow: One characteristic of the bearish belt hold line pattern is the absence of a lower shadow or a very small one. This signifies that the bears have maintained control throughout the session without allowing any significant buying activity.
- Closing Price: The bearish candle closes near its low, further reinforcing the dominance of bears in the market. This suggests that sellers are in control until the end of the session, and there is little to no bullish sentiment.
Psychology of this pattern is that investors think the price of the security is lowest ( may be future support area! ) and buy, resulting in bullish belt hold. This may result in future uptrend. Whereas for bearish belt hold traders think that price is too high and sell (may be future resistance area! ) . This might result in future downtrend.Try to observe this pattern on your TradingView chart.
Next Read: Three white Soldiers candlestick pattern!