BELT HOLDS
BULLISH BELT HOLD:
It is a tall Green candle that opens on or near the lows of the day and closes at or near the highs of the day.
A Bullish belt hold appearing in a decline forecasts a potential rally and at the ascent confirms the intactness of the Bull trend.
BEARISH BELT HOLD:
It is a Long Red Candle that Opens at or near the high’s of the day and then falls down towards the lows of the day and closes at or near the low’s of the day.
Appearance of Bearish Belt Hold at the end of an uptrend signifies TOP REVERSAL.
Belt holds appearing near the Support or Resistance areas confirm the strength of those areas and are more significant for a reversal to take place.
Belt hold lines increases the chances of a reversal signal when they have not appeared regularly on the chart in recent time.
When a Long Position is to be closed?
A Stock in an uptrend shows sign of tiredness and reversal, when a Doji or a Spinning top occurs and it is then confirmed by a Bearish Belt Hold.
When a Short Position is to be closed?
A Stock in an Downtrend shows sign of tiredness and reversal, when a Hammer occurs and it is then confirmed by a Bullish Belt Hold.
While analysing Candles, one should consider both Real body as well as Shadows projected by them.
A tall Green candle that also has a long upper shadow offsets some of its Bullish implications and similarly a tall Red candle that also has a long lower shadow offsets some of its Bearish implications.
A market stabilizing at its Support and many shadows develop with definable long lower Bullish shadows (despite the size of real body), indicate that Buyers are accumulating each time the price comes down to that support levels.
Long positions can be initiated if the resistance levels are breached with heavy volumes.
BULLISH BELT HOLD:
It is a tall Green candle that opens on or near the lows of the day and closes at or near the highs of the day.
A Bullish belt hold appearing in a decline forecasts a potential rally and at the ascent confirms the intactness of the Bull trend.
BEARISH BELT HOLD:
It is a Long Red Candle that Opens at or near the high’s of the day and then falls down towards the lows of the day and closes at or near the low’s of the day.
Appearance of Bearish Belt Hold at the end of an uptrend signifies TOP REVERSAL.
Belt holds appearing near the Support or Resistance areas confirm the strength of those areas and are more significant for a reversal to take place.
Belt hold lines increases the chances of a reversal signal when they have not appeared regularly on the chart in recent time.
When a Long Position is to be closed?
A Stock in an uptrend shows sign of tiredness and reversal, when a Doji or a Spinning top occurs and it is then confirmed by a Bearish Belt Hold.
When a Short Position is to be closed?
A Stock in an Downtrend shows sign of tiredness and reversal, when a Hammer occurs and it is then confirmed by a Bullish Belt Hold.
While analysing Candles, one should consider both Real body as well as Shadows projected by them.
A tall Green candle that also has a long upper shadow offsets some of its Bullish implications and similarly a tall Red candle that also has a long lower shadow offsets some of its Bearish implications.
A market stabilizing at its Support and many shadows develop with definable long lower Bullish shadows (despite the size of real body), indicate that Buyers are accumulating each time the price comes down to that support levels.
Long positions can be initiated if the resistance levels are breached with heavy volumes.
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