Bullish Belt Hold
Candlestick PatternsA single bullish candle that opens at or near its low and closes near its high with little or no lower wick. It appears in a downtrend and signals aggressive buying from the open.
What Is a Bullish Belt Hold?
The bullish belt hold (yorikiri in Japanese) is a single-candle pattern that forms during a Downtrend. The candle opens at or very near the session's low, and buyers take control immediately, pushing the price up to close near the high. The result is a long green candle with no lower shadow (or an extremely short one) and a small or absent upper shadow.
Unlike a standard bullish candle, the belt hold's defining feature is the open at the low. Sellers had no opportunity to push the price below the opening price even briefly.
Trading the Bullish Belt Hold
On EUR/USD, a bullish belt hold at a daily Support level shows immediate and sustained buying from the session open. Enter long on the close of the candle or on a pullback to its midpoint. Place the stop below the candle's open (which is also its low).
The pattern is more meaningful after a multi-day decline and near a key technical level. In isolation during Consolidation, it carries less weight.
Belt Hold Strength
The longer the belt hold candle relative to recent candles, the stronger the signal. A belt hold that is two or three times the average candle size shows a significant influx of buying pressure. If it breaks above a recent swing high in the process, it combines the belt hold signal with a Breakout, creating a higher-conviction setup.
Related Terms
Marubozu
A candlestick with a long body and no wicks (or very short ones), indicating complete dominance by either buyers or sellers throughout the session.
Bullish Engulfing
A two-candle bullish reversal pattern where a large green candle completely engulfs the body of the preceding red candle. It signals strong buying momentum after a decline.
Hammer
A bullish reversal candlestick with a small body at the top and a long lower wick at least twice the body length. It appears at the bottom of a downtrend.
Morning Star
A three-candle bullish reversal pattern consisting of a large red candle, a small-bodied candle (often a doji), and a large green candle. It signals the end of a downtrend.