Bearish Belthold

Bearish Belthold for NT8
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A Bearish Belthold is very similar to the Black Marubozu pattern, opening at the candle high, falling to close near its low. This is what leaves the small lower shadow at the bottom of the candle. To learn more, check out the video below:

What is a Bearish Belthold

TheBearish Belthold pattern will plot during a up-trend with a large candle opening at its high, falling to close near the low. The pattern does not have an upper shadow and only a small wick towards the bottom of the candle. It is also required that the prior bar was an up-close.

To determine the large body requirement, a minimum threshold has to be met. This is done by making a comparison to the average bar size found in the reference period. The minimum large body threshold, as well as the reference period used to establish the average, are adjustable.

You may furthermore modify the lower wick requirement for theBearish Belthold, by default defined as being relatively small. The maximum permitted ratio is calculated by dividing the lower shadow by the body range. This setting is also adjustable via the indicator dialogue box.

When identified as a reversal, theBearish Belthold will occur during a minor up trend. The swing trend trend bias specifications are user selectable via the indicator dialogue box, as per the deviation type and multiplier settings.

Being a one bar pattern, theBearish Belthold may plot quite frequently. It is therefore not the most reliable when used without additional technical indicators. For example, the statistical probability may improve when combined with certain support levels, such as a moving average, the Donchian Channel or daily pivots.

More information on combining other technical indicators with candlestick patterns available here.

Other bearish candlestick patterns

Other bearish candlestick patterns include the bearish engulfing, bearish harami, bearish harami cross, black marubozu, dark cloud cover, shooting star, gravestone doji, hanging man, evening star, evening doji star, long black candle, tweezers top, three black crows and the falling three methods.

All of the above patterns may be identified with our candlestick pattern indicator for NinjaTrader 8. Check out the LizardIndicators Premium Section for more information.