BEARISH BELT HOLT PATTERN:
The Bearish Belt Holt Pattern is a single candlestick pattern and it is basically a Black Opening Marubozu that occurs in an uptrend. The pattern shows that the day opens on its high, it then rallies against the trend of the market, and then closes near its low but not necessarily at its low. Longer bodies for Belt Hold are indicative of more resistance to the trend they are countering.
We have a market that is trending up when a significant gap in the direction of trend occurs as the day opens. However, then prices reverse direction and all further price action of the day is the opposite of the previous trend. Such a move causes concern among the bulls and leads them to sell many positions. This strengthens the reversal and turns into a sell-off.
A confirmation of the trend reversal with either a black candlestick, a large gap down or a lower close on the next trading day is required.
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