Bearish Belt Hold
Bearish Belt Hold
A large red candle with no upper wick: it opens at the high, then price sells off through the session.
30-second summary
What does it signal?
A Bearish Belt Hold at the end of an uptrend is a potential reversal signal: buyers tried to push higher, but sellers drove price back down.
When is it reliable?
At a strong resistance level, with above-average volume and a confirming red candle in the next period.
When to avoid it?
In sideways markets and on very short time frames, such as 1-minute or 5-minute charts, where noise is too high and the signal has little statistical value.
Pattern in chart context
The chart shows the typical appearance of the Bearish Belt Hold pattern within a price action context. The highlighted area marks the pattern itself. Data is illustrative.
Market psychology — in 3 steps
The uptrend holds
Several candles form higher highs and higher lows. Buyers control the market, and sentiment remains positive.
The Bearish Belt Hold forms
Buying pressure fades and sellers return. Price is pushed back down near its starting point, creating the potential for a reversal.
Confirmation arrives
The next candle closes with a red body, ideally on high volume. Sentiment has turned, and a new downtrend begins.
Description
The Bearish Belt Hold is a large red candle that opens at the period high and closes near the low, with little to no upper wick. At the end of an uptrend, this pattern shows a sharp shift in sentiment: the market reverses immediately after the open and keeps moving lower. Its Japanese name, “yorikiri,” refers to the start of an attack.
Context of appearance
This pattern appears near the end of an uptrend, often as a reaction to negative news or an earnings release. It carries more weight when volume is high.
Identification rules
- ✓ Forms at the end of an uptrend
- ✓ The upper wick is no more than 1–2% of the body length
- ✓ The body makes up at least 70% of the full range
- ✓ The open often gaps higher, then sentiment reverses
- ✓ A confirming next candle increases reliability
Trading strategy
For a short CFD setup, entry is typically considered after the Belt Hold closes or at the next session’s open. Stop-loss is placed above the candle high, with a take-profit target around 2:1.
⚠️ For educational purposes only. Trading based only on candlestick patterns carries significant risk — combine them with other technical analysis tools, support/resistance levels, and risk management.
Candle anatomy
- 01 Large red body
- 02 Open at the period high, with no upper wick
- 03 A short lower wick may be present
- 04 The body is longer than average
Same shape, opposite meaning
The Bearish Belt Hold and the Bullish Belt Hold look visually identical. The difference lies in context — if you mistake one for the other, you enter in the opposite direction.
Bearish Belt Hold
Bearish Belt Hold
Bullish Belt Hold
Bullish Belt Hold
💡 The lesson: the candle shape alone is never enough — always read the trend first, then the pattern.
Most common mistakes
Ignoring context
A Bearish Belt Hold makes sense only near the end of an uptrend. In a sideways market or downtrend, it has a different meaning, so check the trend first.
Entering on the pattern close
The pattern itself is not an entry trigger. Confirmation comes from the close of the next red candle. Patience means fewer false signals.
Using too short a time frame
On 5-minute candles, most reversal patterns are noise. Daily and 4-hour charts tend to produce cleaner signals.
Ignoring volume
A Bearish Belt Hold on low volume is a weak signal. With above-average volume, the reversal is more meaningful. Always check the volume bar.
Quick self-test
Which one is the Bearish Belt Hold?
A reversal signal at the end of an uptrend.
