A Bullish Belthold is very similar to the white marubozu pattern, opening at the candle low, rallying to close near its high. This is what leaves the small lower shadow towards the top of the candle. To learn more, check out the video below:
What is a Bullish Belthold
The Bullish Belthold pattern will plot during a down-trend with a large candle opening at its low, rallying to close near the high. The pattern does not have a lower shadow and only a small wick at top of the candle. It is also required that the prior bar was a down-close. The bearish equivalent to this pattern is the Bearish Belthold.
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 upper wick requirement, by default defined as being relatively small. The maximum permitted ratio is calculated by dividing the upper shadow by the body range. This setting is also adjustable via the indicator dialogue box.
When identified as a reversal, theBullish Belthold will occur during a minor down trend. Theswing trend bias specifications are user selectable via the indicator dialogue box, as per the deviation type and multiplier settings.
Being a one bar pattern,theBullish 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 combiningother technical indicators with candlestick patterns available here.
Other bullish candlestick patterns
Other bullish candlestick patterns include the bullish engulfing, bullish harami, bullish harami cross, white marubozu, bullish piercing, bullish hammer, dragonfly doji, inverted hammer, morning star, morning doji star, long white candle, tweezers bottom, three white soldiers and the rising 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.
