Bullish Belt Hold Pattern

by · December 31, 2009

BULLISH BELT HOLD PATTERN (BBHP)
a White Opening Marubozu during a downtrend

Characteristics:
1.Overall, the market is on a downtrend;
2.The day gaps down, the market opens at its low, but the price goes up and it closes near the high of the day; and
3.We see a White Opening Marubozu (WOM).

Brief Explanation:
This is a single stick pattern. It is a WOM that occurs in a downtrend. So it opens at its low, then we see a rally and the day closes near the day’s high. If Belt Hold Lines have longer bodies, then they offer more resistance to the trend they are countering. The reversal may signal a rally for the bulls.

Notes:
1.On the next trading day, a confirmation is required to prove the trend reversal (through a white candlestick, a large gap up or a higher close).