In Japanese, a Bullish Belt Hold, known as “yorikiri,” is a single Japanese candlestick pattern that suggests a possible reversal of the current downtrend.
- white body
- no lower shadow
- short upper shadow
- appears as a long line
This article is devoted to the Bullish Belt Holdone-line pattern.
Bullish Belt Hold is a one-line pattern formed by the Opening White Marubozu basic candle. There is no source, which would provide the information on how short the upper shadow should be. In CandleScanner, we adopted that it should be no more than 25 percent of the candle. The pattern has to occur in a downtrend.
It rarely changes the trend on the next candle. Pattern rather slows it down, and the turning point occurs in the subsequent nearest candles. However, it is not the rule. As with all one-line patterns, it is worth waiting for a few candles for signal confirmation.
Bullish Belt Hold pattern may occur in combination with another pattern. For example, it can be the second line (Opening White Marubozu appearing as a long line) of such patterns as Bullish Engulfing, Piercing, and Three Inside Up patterns. In this case, the more important is the pattern composed of multiple lines. When a very long candle forms the Bullish Belt Hold pattern (three times longer than an average length of n last candles), it may create an extreme support zone.
Figure 1. The example shows an unsuccessful attempt to change the trend by Bullish Engulfing pattern, whose second line is the Bullish Belt Hold pattern. A large trading volume accompanies the occurrence. The resistance zone established by the Falling Window pattern and Closing Black Marubozu basic candle is too strong. As a result, the market consolidation began (between $60.28 and $61.22) because the Opening White Marubozu candle created a support zone.
Figure 2. The region between two occurrences of Black Candles constitutes a strong resistance zone hard to beat. Bulls stop the heavy downtrend at high trading volume.
Then Bullish Harami pattern occurs that ends the downtrend. The appearance of the Bullish Engulfing pattern where the second line is forming Bullish Belt Hold pattern, accompanied by the very high trading volume, creates a strong support zone. That region allows bulls to attack and reverse the downtrend. Finally, the Turn-Up pattern has overcome the trend, but the resistance band created by Black Candle is too tough to surpass.
Bullish Belt Hold statistics
Below you can find some Bullish Belt Hold pattern statistics calculated by CandleScanner software. To see more detailed statistics, for other markets and periodicity, try our CandleScanner software. Prices start at only $10, and you can see more detailed statistics for other markets and periodicity.