Belt Hold BearishTimeframe: 30 Minutes
Reliability: Low
A reversal pattern.
During an uptrend, a black body occurs in an upside gap with an open that is also the high for the candle. This may cause many positions to be sold, perpetuating a bearish reversal.
The longer the height of the belt-hold candlestick the more significant the pattern is.
Engulfing BearishTimeframe: 30 Minutes
Reliability: Moderate
A reversal pattern.
Occurring during an uptrend, this pattern characterized by a large black real body, which engulfs a white real body (it doesn’t need to engulf the shadows). This signifies that the uptrend has been hurt and the bears may be gaining strength. The Engulfing indicator is also the first two candles of the Three Outside patterns.
It is a major reversal signal.
Factors that are increasing this signal’s reliability:
1) The first candlestick has a very small real body and the second candlestick a very large real body.
2) The pattern appears after a protracted or very fast move.
3) Heavy volume on the second black candlestick.
4) The second candlestick engulfs more than one real body.
