BEARISH BELT-HOLD LINE:-
DEFINITION:-
A Bearish Belt-Hold Line is a Black Opening Bozu candle seen in an uptrend. It opens at the high but closes back down near the low, correcting the uptrend.
RULES FOR IDENTIFICATION:-
1. An uptrend must be in progress.
2. In a bearish scenario, the market opens with an up gap in the direction of the uptrend but thereafter declines all the way down to close near the day’s low.
3. The Bearish Belt-Hold Line is also called an Black Opening Bozu Line where it does not have an upper shadow because it opens at the high but closes near its low, leaving a lower shadow.
4. The Japanese name for Belt-Hold is the sumo wrestling term yorikiri, which means “pushing your opponent out of the ring while holding on to his belt.”
PROPER ACTION:-
Possible bearish reversal. Sell only if there is a bearish confirmation candle that closes below the lowest low of candles 1 and 2. Otherwise, the uptrend can continue.
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