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gandra
gandra
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attention Tips to Trading the Big Belt

on Sun Sep 13, 2015 4:18 pm
The rules for the bearish big belt and the bullish big belt are essentially the same, but in reverse. The important things to remember for this catalyst are as follows: All bullish big belt candlesticks have an opening price that is lower than the closing price of the previous candlestick; likewise, all bearish big belts have an opening price that is higher than the closing price of the previous candlestick.

The bullish big belt must have an opening price near the low of the candlestick, and it must also have a closing price near the high of the candlestick (see Figure 9.7).

FIGURE 9.7 Bullish big belts must have the opening price near the low of the candlestick and the closing price near the high of the candlestick.
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The reverse is true for the bearish big belts: The opening price must be near the high of the candlestick, and the closing price must be near the low of the candlestick (see Figure 9.8).

FIGURE 9.8 Bearish big belts must have the opening price near the high of the candlestick and the closing price near the low of the candlestick.
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Even more critical, the big belt candlestick must print on a zone. If the big belt candlestick is not on a zone, the odds of the trade working out fall considerably. Likewise, the very best big belts have room to the left, similar to the ideal kangaroo tail. Those big belts that do not have much space have a low rate of success (see Figure 9.9).

FIGURE 9.9 Big belts must print on a zone, and they should have room to the left. Those belts that do not print in a zone and do not have room to the left are unlikely to succeed, such as this EUR/USD weekly bullish big belt.
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In summary, big belts are extremely powerful catalysts provided they print at the right spot on your chart. In the list that follows, you will find a summary of characteristics of both the bearish big belts and the bullish big belts.

Characteristics of the bearish big belts:

  • The opening price is higher than the closing price of the previous candlestick.
  • The opening price is near the candlestick high.
  • The closing price is near the candlestick low.
  • The big belt prints on an important zone.
  • The big belt should have room to the left.
  • The stop loss is placed above the candlestick high.
  • The sell stop is placed below the candlestick low.
  • The closest zone is the profit target.


Characteristics of the bullish big belts:

  • The opening price is near the low of the candlestick.
  • The closing price is near the high of the candlestick.
  • The big belt prints on an important zone.
  • The big belt should have room to the left.
  • The stop loss is placed below the candlestick low.
  • The buy stop is placed above the candlestick high.
  • The closest zone is the profit target.


By:Alex Nekritin
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Short info about me!
I am forex, stock market trader, and software developer at the same time. I developed several Trading Robots (Expert Advisors) for trading on Meta Trader 5 trading platform. If you want to see all my EA's, visit the following link below.
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