Bullish Belt Hold (Yokiri)
A single Japanese candlestick pattern is known as a “Yorikiri” or “Bullish Belt Hold” signals that the present downturn may be about to reverse.
The candle’s significance is mostly shown by its size, similar to the Marubozu candlestick pattern, while the shadows (or wicks) are either insignificant or nonexistent.
How to Recognize a Bullish Belt Hold?
The Bullish Belt Hold, which follows a downtrend, is easy to recognize and extremely frequent. Look for the following indicators to spot it:
- The candlestick (Bullish Belt Hold) must come after a downward trend.
- A bullish (white) candlestick must appear after a run of bearish candles.
- A long white candlestick with a short top shadow should make up the motif (or no upper shadow).
- There should be no lower shadow at all on the candlestick.
Trading the bullish belt hold alone is not advised, as is the case with the majority of Japanese candlestick patterns. The likelihood of a reliable signal is substantially increased by the use of other technical indicators and price patterns.
For instance, the bullish belt hold might form a potential double bottom by opening below a previous swinging low and closing back over it. A long white (or green) candlestick should be the bullish belt hold to show that the bulls have regained the upper hand. The candle that precedes the pattern should ideally be accompanied by above-average volume to signify excessive selling and a potential upside reversal.
So, it can be said that in order to perform your trades based on the Bullish Belt Hold, you need to make a notice of the length of the candle formed, basically the bigger the candle, the more powerful indication it can turn out to be or we can say that is basically more of a better indicator in a bunch of several indicators that will be used by you in your trading strategy.
In addition to that, the reversal is basically more strong and is recommended by many, that, it should be followed by another clean bullish candle in order to give better validation to the trend reversal.
