Belt-Hold line-Yorikiri-Bullish Pattern

The Bullish Belt Hold patterns stand out due to their simplicity and reliability. They are also called the yorikiri pattern. 

“Yorikiri” is a term used in sumo wrestling to describe a winning technique. It translates to “force out” in English. This manoeuvre involves a wrestler (rikishi) grabbing their opponent’s mawashi (belt) and using forward momentum to push them out of the dohyo (ring). 

A Belt Hold pattern is a single candlestick formation that signals a potential reversal in market trends.  

A Bullish Belt Hold pattern typically appears at the bottom of a downtrend, suggesting a potential reversal to the upside. It forms when: 

  1. The market opens at or near the session’s low.
  2. The price moves higher throughout the session.
  3. The candle closes near the session’s high, resulting in a large green/blue (bullish) body.

The absence or minimal presence of a lower shadow indicates that buyers controlled the price from the open to the close. 

The Bullish Belt Hold pattern signifies strong buying interest from the market opening. The lack of a lower shadow indicates buyers did not allow the price to dip much, demonstrating their confidence and strength. When this pattern emerges, it suggests that the previous downtrend might be losing momentum, and a bullish reversal could be imminent. 

Traders often look for confirmation before acting on a Bullish Belt Hold pattern. This can include: 

– Waiting for a subsequent bullish candle to form, confirming the reversal. 

– Checking for increased trading volume during the formation of the Belt Hold, which adds credibility to the signal. 

– Other technical indicators, such as RSI (Relative Strength Index) or MACD (Moving Average Convergence Divergence), can corroborate the reversal signal. 

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