What it looks like
Bullish: after a fall, a long up candle whose open is at or very near its low, so there is no real lower wick, and which closes near its high. Bearish: after a rise, a long down candle that opens at or very near its high, with no real upper wick, and closes near its low. The body should be clearly longer than recent candles.
What it means
The candle opened and the other side never got a moment: price ran one way from the first tick. After a fall that means sellers were stopped and buyers took over for the whole candle; after a rise the reverse. It is a sign the move is tiring, not proof that it has turned.
Bullish and bearish versions
How to trade it
- 1
Confirm: wait for the next candle to close beyond the belt hold (above its high for bullish, below its low for bearish).
- 2
Enter: trade in that direction on the confirming close.
- 3
Stop: just below the low for a bullish belt hold, just above the high for a bearish one.
- 4
Target: 2 times the stop, or the nearest swing level the other way.
- 5
Example: after a fall on gold 1 hour, a bullish belt hold runs 12 points from its open on the low. The next candle closes above its high; you buy with a 13 point stop under the low and aim 26 points higher.
For the bullish version, a close below the pattern's low. For the bearish version, a close above the pattern's high.
Where it works best
At a floor (bullish) or a ceiling (bearish) after a clear move, often at the open of a session where a long candle can start right at an extreme.
WickSpeak finds the belt hold automatically on any chart and names it on the candles that made it. Next to the name it writes what the pattern is, how to trade it and what proves it wrong, so you never have to guess the rule. In Playbook you can use the belt hold, or any of the 146 patterns, as a condition alongside up to 12 conditions on any of 12 timeframes, then backtest it on past candles with your costs.
Common mistakes
- Calling any long candle a belt hold without a move before it.
- Trading it without the next candle's confirming close.
- Missing that the stop sits beyond the full candle, so the risk can be large; size down.
Related patterns
Questions traders ask
What is a bullish belt hold?
It is a long up candle after a fall that opens on its low and closes near its high. It hints sellers have been stopped, and needs a close above its high to trade.
What is a bearish belt hold?
It is a long down candle after a rise that opens on its high and closes near its low. Sell only once a later candle closes below its low.
How is a belt hold different from a marubozu?
A marubozu has almost no wicks at either end and is read as pressure carrying on. A belt hold only needs no wick at the open end and is read as a possible turn after a move.
Where is the stop on a belt hold trade?
Beyond the far end of the candle: below the low for bullish, above the high for bearish. A close past that level cancels the pattern.