Belt-hold lines are single candle reversal patterns that signals a change in sentiment. The bearish belt-hold line candle usually occurs in an uptrend where the candle in the following session (number 2) opens higher than the close of the previous candle (number 1) but manages to come all the way back just to close at the same level of the previous session’s close. This indicates that at the opening of the second session the price moved in the direction of the trend (upwards) but then moved back to close at the same level which left the sentiment unchanged from the previous one. Belt-hold line candles should always be used in conjunction with other reversal patterns to act as confirmation of the trend reversal. Therefore belt-hold line candles acts as warnings only.

A bullish belt-hold line candle is usually found in an uptrend where the second candle opens higher or very close to the close of candle number 1, just to advance further in the session to close probably on a new high. This confirms that the sentiment towards the instrument is still positive. Keep in mind that a bullish belt-hold line candle can also open lower than candle number 1, but never more than 50% of candle number 1.