Buckling down for some belt holdbased trading

It's time to investigate what it's like to trade signals. These are pretty powerful and common patterns that can be used. The dramatic reversal from the opens they represent often does show a trend change occurring over the course of just one day.

Figure 6-19:

Textbook example of a long belt hold.

Figure 6-19:

Textbook example of a long belt hold.

Figure 6-20:

Textbook example of a short belt hold.

The price action behind a belt hold is pretty directional. For example, a stock in a defined downtrend may open on its low and then spend most of the day rallying. As a downtrend presents itself, the bulls have finally had enough and start buying. Prices reach a low enough level to encourage not just buying, but aggressive buying.

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