Friday, January 10, 2014

BELT HOLD




BULLISH BELT HOLD: an Up Opening Marubozu or an up Marubozu (opens lower than the two preceding down candlesticks) occurs in a downtrend, opening on the low, a rally begins during the time against the overall trend of the market, stopping with a close near the high, leaving a small shadow on top of the candle, a significant gap in the direction of the prevailing downtrend, after the market opening then moving in the opposite direction, prices must cross above the last close for confirmation.
BEARISH BELT HOLD: a down Opening Marubozu or a down Marubozu (open higher than the two preceding up candlesticks) occurs in an uptrend, opening on the high, prices fall against the overall trend of the market, stopping with a close near the low, leaving a small shadow at the bottom of the candle, the resistance against the trend will be stronger. The market gaps up and opens at its high, closes near to the low, a long down body without upper shadow. The market opens, things change rapidly, the market moves in the opposite direction. The confirmation level is defined as the last close. Prices must cross below the last close for confirmation. 

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