Candlestick pattern Belt Hold Lines

    Belt Hold Lines model Yorikiri Yorikiri is a Japanese term for wrestling Sumo. This is a reversal pattern with a very simple structure, consisting of only 1 candle so it is easy to identify and remember. This pattern has the effect of highlighting sensitive areas where market sentiment is likely to change. If you understand the characteristics and practice using Belt Hold Lines proficiency, you can have pretty impressive deals there!

    What is Belt Hold Lines?

    Belt Hold Lines, also known as Yorikiri, is simply a long body candle similar to a marubozu candle placed in the context of market trends.

    There are two types of Belt Hold Lines: Increased Belt Hold Lines and Decreased Belt Hold Lines. In particular, the bullish Hold Hold Belt pattern appears when the market is at the bottom but suddenly creates a long bullish candle and closes above. The bearish hold of the Belt Hold Lines pattern is in the opposite direction, creating a long bearish candle on the top of the uptrend.

    You may not know, in Sumo wrestling, the term Yorikiri means the act of trying to push your opponent out of the competition while holding your belt. Similarly, the Belt Hold Lines model is just like a belt that helps, hold the price down when the market is plummeting.

    Features of Belt Hold Lines

    Belt Hold Lines is a single candlestick pattern that should have an easy-to-identify identity, but keep in mind the following:

    • Candles must be in the opposite color to the trend. That is, if the trend is down, the candles must be bullish, if the trend is up, the candles must be down.
    • Candles have no ball at the opening. That is, the opening price must be the highest or lowest price.
    • Candles must have long stems. As long as possible.

    In short, the Belt Hold Lines pattern is a long / very long candle that goes against the current trend, with no tail at the opening price. This candlestick pattern shows a relatively reliable reversing signal in the short term.

    Psychological evolution of the Belt Hold Lines model

    In a strong uptrend, prices go up, attract buyers, keep going up and up further. When the market peaked, the market entered a new session. At this session, the price could not overcome its opening level.

    Not only can not overcome it, but on the contrary, the price has dropped rapidly and sharply down below. This is a signal that the uptrend is not as strong as before and a new trend is ready to appear.

    Actual example of Belt Hold Lines model

    Here is an example of the bearish Hold Hold Belt candle pattern. As can be seen on the chart, the market is initially moving upwards. The price then created a bearish candlestick with a very long body, especially without a candlestick above. That's all it takes to create the Belt Hold Lines model, very simple. The market then dropped inertia and corrected slightly to below.

    Similarly, in the chart illustrated below, a bullish Belt Hold Lines pattern was created at the bottom and caused the market to turn up.

    Trading guide with Belt Hold Lines model

    Now you know how to identify the Belt Hold Lines model. Next we will see how to choose a buy / sell point and take profit appropriate for this candlestick pattern. The good thing about Belt Hold Lines is that the transaction rules are simple and easy to remember.

    Note that here we will guide you with an example of an increase in the Hold Hold Lines candle (on the buy order), for the Hold Hold Lines bearish candles, you just do the opposite (on the sell order)

    Entry point command

    As can be seen in the image below, when encountering the Belt Hold Lines pattern, our entry rules are simple: Buy as soon as the candle closes.

    However, you need to remember that the probability of successful trading is never 100%. Therefore, you need to pay attention to the calculation of order size and strict risk management, set a clear stop loss / take profit.

    Stop loss

    You can place a stop loss just below the Belt Hold Lines candlestick. However, a long, short-body candle usually appears in the context of market volatility is quite strong. Therefore, if you place a stop loss right at the bottom of the candle, it is likely that the price action will go down and touch the stop loss before turning up, quite sour. Therefore, we recommend that you place a stop loss slightly below the bottom of the Belt Hold Lines candle, which may be placed below the previous candles as shown below.

    Take profit with Belt Hold Lines model

    There are two ways of taking profits with this pattern.

    The first easy way is to calculate the length of the Belt Hold Lines body and then multiply it by 2 or 3 times, you will get the number of pips needed to close the position.

    The second way is to place your profit taking points at the resistances or watch the market to recognize the weakening signals with the Japanese candlestick pattern or technical indicators to exit the order.

    Epilogue

    Belt Hold Lines is a single candlestick pattern that appears at the top / bottom of the trend and provides a relatively stable short-term reversal signal. However, you must be careful to always keep discipline when trading, especially day trading.


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    Author: Tin Nguyen

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