The Belt Hold is a one day candlestick pattern and it can be bullish or bearish.
A bullish belt hold occurs when prices open on the low of the day and then immediately move higher creating a long bullish candlestick. The bullish belt hold is also referred to as a white opening shaven bottom.
A bearish belt hold occurs when prices open on the high of the day and then move down for the remaining period, thus creating a long bearish candlestick. The bearish belt hold is called a black opening shaven head.
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.
Practice Belt Hold Line – Beginner
Practice Belt Hold Line – Intermediate
Practice Belt Hold Line – Advanced
Next Read: Three white Soldiers candlestick pattern!