Bullish belt hold

Definition

This is a three candlestick pattern signaling a major bottom reversal. It is exactly the same as the Bullish Morning Doji Star with one important difference. The shadows on the Doji must also gap below the shadows of the first and third days. Its name comes from the second day of the pattern which floats out on the chart by itself like an abandoned baby of the first and third days. Basically the pattern consists of a black candlestick followed by a Doji that gaps away (including shadows) from the prior black candlestick and the following white candlestick whose closing is well into the first black body.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. A black candlestick is observed on the first day.
3. Then we see a Doji on the second day whose shadows gap below the previous day