Bearish Belt Hold

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Figure 1. Bearish Belt Hold pattern.

Figure 1. Bearish Belt Hold pattern.

Japanese name: yorikiri
Forecast: bearish reversal
Trend prior to the pattern: uptrend
Opposite pattern: Bullish Belt Hold

Construction:

  • black body
  • no upper shadow
  • short lower shadow
  • appears as a long line

 


This article is devoted to the Bearish Belt Hold one-line pattern.

Bearish Belt Hold is a one-line pattern formed by the Opening Black Marubozu basic candle. There is no source providing the information on how short the lower shadow should be. In CandleScanner, we adopted that it should be no more than 25 percent of the candle. The pattern has to occur in an uptrend.

It rarely changes the trend on the next candle. Pattern rather slows it down, and the turning point occurs in the subsequent nearest candles. However, it is not the rule. As with all one-line patterns, it is worth waiting a few candles for a signal confirmation.

Bearish Belt Hold pattern may occur in combination with another pattern. For example, it can be the second line of such patterns as Bearish Engulfing, Dark Cloud Cover, and Three Inside Down. In this case, the more important is the pattern composed of multiple lines. When the Bearish Belt Hold pattern is formed by a very long candle (three times longer than an average length of n last candles), it may create a very strong resistance zone.

 

Figure 2.

Figure 2. Before the occurrence of Bearish Belt Hold pattern, the market is trying to stop the downtrend by forming the Opening White Marubozu candle that creates the local support zone.
On the chart, you can notice resistance area, within which the Bearish Belt Hold is formed preventing market from further growth. In order to continue the growth, the market would have to close above the Bearish Belt Hold pattern in the following days.
Each scenario is still possible as shown by the next two days after Bearish Belt Hold occurrence. On the third day, the Turn Down pattern is created, which beat the local support formed by the Opening White Marubozu. The market is decreasing and the move is confirmed by the Opening Black Marubozu formed at a high trading volume.

 

Figure 3.

Figure 3. The occurrence of Rising Window pattern is an attempt to attack the resistance line formed by the Black Candle in August. Rising Window pattern creates a support zone, which as it turns out later, will play a significant role in the near future.
The mentioned resistance cannot be successfully broken, and yet another new resistance area is formed by the occurrence of Bearish Belt Hold pattern. It is worth to emphasize that pattern is created by a high trading volume what suggests its strength.
Nevertheless, it turns out that the support zone formed by the Rising Window is working well, changing the market trend into sideways.
The Long White Candle appearance (high trading volume) confirms the previous support zone pushing it even higher.
Then market increases breaking the first resistance area. During the attack on the second resistance line, there is the next occurrence of Bearish Belt Hold pattern being the second line of Bearish Engulfing pattern. The high trading volume that accompanies these patterns shows the determination of the bears. However, in the following days they got weaker and the market defended itself against the declines thanks to the second support zone (Long White Candle).
Two occurrences of the Bearish Belt Hold pattern could not change the market trend for good, but evidently stopped its growth for a long time.
After the first occurrence of Bearish Belt Hold pattern, the market was in consolidation for two weeks. The second instance resulted in a even longer consolidation, which lasted for three weeks.

 

Bearish Belt Hold statistics

Below you can find some Bearish Belt Hold pattern statistics calculated by CandleScanner software. To see more detailed statistics, for other markets and periodicity try our CandleScanner software. Prices start at only $10, and you can see more detailed statistics, for other markets and periodicity. Click here to find out more!

Pattern name: Bearish Belt Hold
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/1995 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 2,236,421
Number of occurrences (Bearish Belt Hold): 7,929
Number of occurrences (all candlestick patterns): 638,570
% of occurrences (Bearish Belt Hold): 1.24 %
Average frequency: 282.1
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
4 1,434 2,514 1,597 2,380
% of
Occurrences
0.05 % 18.04 % 31.71 % 20.14 % 30.06 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
11 1,350 2,107 1,387 3,074
% of
Occurrences
0.14 % 16.89 % 26.57 % 17.49 % 38.91 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
CHK 19 264.9 13 68.43 % 15 78.95 %
FTI 23 153.6 16 69.56 % 17 73.91 %
FOSL 18 279.6 13 72.22 % 13 72.22 %
BA 19 264.9 10 52.62 % 12 63.15 %
PKI 21 239.7 10 47.61 % 13 61.90 %
HRB 18 279.7 5 27.78 % 11 61.11 %
NEM 18 279.7 11 61.11 % 11 61.11 %
KSU 25 201.4 15 60.00 % 15 60.00 %
PWR 20 218.7 11 55.00 % 12 60.00 %
GPS 20 251.7 9 45.00 % 12 60.00 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
LUV 22 228.8 11 50.00 % 11 50.00 %
BSX 19 264.9 8 42.11 % 8 42.11 %
FITB 21 239.7 9 42.86 % 8 38.10 %
SCHW 21 239.7 8 38.10 % 8 38.10 %
DHI 28 179.8 10 35.71 % 10 35.71 %
RHI 28 179.8 10 35.71 % 10 35.71 %
ORLY 20 251.7 7 35.00 % 7 35.00 %
CCI 23 184.5 8 34.78 % 8 34.78 %
SLB 23 218.9 8 34.78 % 8 34.78 %
IVZ 32 155.9 11 34.38 % 11 34.38 %
Pattern name: Bearish Belt Hold
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/2010 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 614,034
Number of occurrences (Bearish Belt Hold): 1,349
Number of occurrences (all candlestick patterns): 166,328
% of occurrences (Bearish Belt Hold): 0.81 %
Average frequency: 455.2
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
4 229 530 313 273
% of
Occurrences
0.30 % 16.68 % 39.29 % 23.20 % 20.53 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
11 201 447 287 403
% of
Occurrences
0.82 % 14.08 % 33.14 % 21.28 % 30.68 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
MOS 5 251.6 4 80.00 % 4 80.00 %
NI 6 209.7 1 16.66 % 4 66.66 %
RHT 5 251.6 2 40.00 % 3 60.00 %
ESRX 5 251.6 3 60.00 % 3 60.00 %
K 5 251.6 0 0.00 % 3 60.00 %
LUV 5 251.6 3 60.00 % 3 60.00 %
KIM 7 179.7 1 14.28 % 3 57.14 %
AMG 6 209.7 3 50.00 % 3 50.00 %
FTR 8 157.3 3 37.50 % 4 50.00 %
PKI 6 209.7 1 16.67 % 3 49.99 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
LUK 5 251.6 3 60.00 % 3 60.00 %
R 5 251.6 3 60.00 % 3 60.00 %
ACE 5 251.6 2 40.00 % 2 40.00 %
ALTR 5 251.6 2 40.00 % 2 40.00 %
CELG 5 251.6 2 40.00 % 2 40.00 %
FITB 5 251.6 3 60.00 % 2 40.00 %
GPC 5 251.6 2 40.00 % 2 40.00 %
LUV 5 251.6 2 40.00 % 2 40.00 %
RTN 5 251.6 2 40.00 % 2 40.00 %
UTX 5 251.6 2 40.00 % 2 40.00 %

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