Here is an example of strategy when you see the appearance of the Belt Hold pattern filtered by Stochastics at the overbought area, during the course of a rally.

Consider selling when the next candle falls below the low price of the pattern.

Consider placing a protective stop loss at the top of the pattern.

Take-Profit strategy is heavily dependent on the trading profile of each individual:

• Close 50% of the position when price closes below the EMA(20) provided that the distance travelled is at least equal to the length of the pattern.
  1. Move the protective stop-loss at the middle of the pattern.
  2. Close the remaining 20% when price reaches the 200% of the length of the pattern.
  3. Move the protective stop-loss at the bottom of the pattern.
  4. Close the remaining 20% of the position when price reaches 300% of the length of the pattern.
  5. Close the remaining 10% of the position at the presence of a reversal candlestick or when price closes back above the EMA(20).
• Other combinations may be applied.