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A bullish Belt Hold Line is strong bullish can
dlestick pattern which opens at the low of session and closes at high of the day or high of the session. Ideally, the candles should not have any shadows
It shows a strong trend. Practically, there can be small shadows at lower level or upper level which can be ignored. Principle of the concept is still valid for very small wick at lower or upper end, and they show strong bullish session.
The bullish pattern suggests that during the day, buyers were willing to buy even at a higher price, so much so that the price closed at the highest point of the day. We assume that the effect of this pattern will continue in future. It is a good practice to look for prior 4-5 candles. If Marubozu candle is higher than previous 4-5 candles, the pattern is much stronger. Sameway, bearish Marubozu pattern lower than previous major lows is a bearish formation.
There can be some small shadows in the pattern from the practical perspective and can be ignored. These are very important patterns that tells us that the trend (Uptrend or Downtrend) is strong.
Longer the height of the Belt Hold Line patterns, more significant they become. This name has come from Japanese sumo wrestling term. They are also known as Marubuzo lines.
Similarly, a bearish Belt Hold Line is a strong bearish candle stick pattern which opens at the high and closes at the low of the session. It shows that bears were in complete control during that session.
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This pattern can be plotted on the chart by adding it from the Add study menu in TradePoint & Patterns in RZone. The pattern is also available in the System Builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.