Bullish Belt Hold

Hi there and welcome to a video where we'll have a look at the bell toll can slick pattern as available from our candlestick pattern indicator for an inner trader 8. you'll find that in our premium section at lizardindicators.com. It is a pattern which is quite similar to the marbozo pattern and i'll talk about that in a another video, basically the bullish belt hold is located in a downtrend where a large candle opens up at the low and rallying towards the top of the candle closing near the high leaving only a small wick at the top and so the requirements are that the prior bar is a down close, current bar is up close.

This needs to be a large body when compared to the average that you have in the look back period you do not have a lower shadow and only a small upper bic on this candle, the current bar also opens at or below the close of the pryor bar but there is a slight exception to this rule what we call the one tick rule and i'll explain that here shortly, just go over the uh bearish bell tolled pattern first so that is a bearish reversal preceded by uptrend so the prior bar is a up close current one is a down close again we have a large body bar comparing to the average in the look back period no upper shadow and only a small lower wick and the open here is at the prior close or above again subject to this one tick rule which is based on the fact that the indicator was designed for intraday bars and in short on intraday charts you will barely find any gaps because the market is not closed between bars and therefore mini candles tend to open at or near the close of the prior candle but whether the bar open is one take above or below the prior bar does not really have significant meaning it's accidental and depends on a single buy or sell order so for belt hole patterns that means that a one tick difference between the close of the prior candle and the current candle does not invalidate the setup so we do allow for a open here one tick below the close as well. So we'll have a look at that in the chart here we see a bearish belt hole pattern and if we open up the data box we see that the close of this prior candle was at 14113.75 and the open of the next was at 14 113.50 and so this uh is acceptable for identifying a bearish beltol candle.

If you want to get into the details of it even more bearish than a candle that opens at or above the close so there is no reason really to exclude it so a bullish example would be this one prior bar was at 14 471.75 and the open of the bell toll candle 14 472 even and um we'll have a look at a couple of other options that are available in the indicator dialog box obviously the average is important here and so you'll find that calculated by the reference period and then of course this ratio which we use to calculate the body candle so if we change this to let's say a more restrictive definition 2.2 this candle does no longer qualify as a large body bar because we've moved the requirement up quite significantly here moving it back we will meet the requirement.