A faffing bearish belt hold

Just so you'll know what to look for if you suspect that a bearish belt hold may be failing, check out Figure 6-24. It depicts the futures contract that trades on the Japanese Yen.

It's a really nice bearish belt hold pattern, except that it just doesn't work out. The belt hold appears during an uptrend that's been in place for several days, and it's pretty encouraging that lower trading occurs during the next few days. However, seven days after the signal appears, the Yen futures trade over the high of the belt hold day and then trade much higher pretty quickly.

Sometimes signals take a few days to fail. They don't immediately show signs of failure, so stay on your toes and keep your eyes out for signs of trouble.

Figure 6-24:

Chart of a bearish belt hold on the Japanese Yen that fails.

Figure 6-24:

Chart of a bearish belt hold on the Japanese Yen that fails.

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