The belt-catching line is one of the reversal patterns, which can be divided into bullish and bearish. Let's first talk about the morphological characteristics of the belt catch line.
The characteristic of the bullish belt-catching line is a strong positive line, and its opening price is at the lowest point of the day, and after this K-line appears, the follow-up trend will rise all the way. So this pattern is a bullish signal for a bottom reversal.
The bearish belt-holding line is the opposite technical pattern to the bullish belt-holding line. It is composed of a large negative line with a firm decline. The opening price is at the highest point of the day, and then falls from the highest point within the day. When the market is in the overbought zone, the emergence of a bearish belt catch pattern can constitute a top reversal signal.
Practical Instructions for Grabbing the Belt Line
The longer the length of the belt-catching candlestick, the more significant the technical analysis of the pattern. In addition, if the belt catch line appears after the market trend has developed for a long time, then its significance is also more important.
It should be noted that catching the belt line does not mean that the market will reverse immediately. Experienced technical analysts need the cooperation of the next K line to make people believe that the market is about to reverse. For example, the bullish belt-catching line and the next K-line form a pregnant line, flat head bottom shape and other bottoming patterns.
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