Bullish breakaway

Definition

Bullish Belt Hold is a single candlestick pattern basically a White Opening Marubozu that occurs in a downtrend. It opens on the low of the day and then a rally begins during the day against the overall trend of the market which eventually stops with a close near the high leaving a small shadow on top of the candle. If longer bodies characterize the Belt Hold then the resistance they offer against the trend will be even much stronger.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. The market gaps down and opens at its low and closes near to the high of the day.
3. A long white body that has no lower shadow (a White Opening Marubozu) is observed.
Pattern Requirements and Flexibility

A White Opening Marubozu or a White Marubozu (with no upper or lower shadow) should be seen in a Bullish Belt Hold and it should open lower than the two preceding black candlesticks.

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