The Ultimate Guide to Bearish Belt-Hold Candlestick Patterns

Last updated: January 4, 2024

Bearish Belt-Hold Pattern

The bearish belt-hold candlestick pattern is a long red candle which opens near the highs of the trading session and closes near the lows. After a market rally, this candle forecasts potential bearish activity:

Chart

General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes bearish belt-hold patterns with the following characteristics:

Typical characteristics

• Occurrence after a market rally
• Strong red candle opening near the highs of the day and closing near the lows of the day

Examples of use as a trading indicator

• Potential bearish reversal signal after market rally
• Larger significance the longer the height of the candle

Other interpretations

• This pattern may also be called a black opening shaven head.

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!