Bullish Belt Hold pattern in a downtrend signals a trend reversal with an average reliability and has an average Gain/Loss ratio. In an uptrend, it is a continuation signal with an above average Gain/Loss ratio. A weekly Bullish Belt Hold is a very rare pattern.
In a downtrend the oversold momentum indicators improve reliability and profitability of the patterns' reversal signal. The following technical indicators improve reliability and profitability of a downtrend patterns' reversal signal as well:
- Price below Parabolic SAR
- Price below 20, 50, and 100 Day Moving Averages
- Price near the Lower Bollinger Band
In a rising trend all mentioned above technical indicators also improve pattern's continuation signal profitability.
|
Daily Patterns |
Frequency |
Above Average |
Appears in downtrend |
73% |
Reversal in downtrend |
31% |
Reversal in downtrend when parent trend is up |
56% |
Reversal in downtrend when parent trend is down |
22% |
Continuation in uptrend |
76% |
Continuation in uptrend when parent trend is up |
92% |
Continuation in uptrend when parent trend is down |
36% |
Avg. Gain/Loss Ratio in Downtrend |
1.20 |
Avg. Gain/Loss Ratio in Uptrend |
1.89 |