Wick
Thin part of a candlestick showing price extremes for a given time period.
Beginner-friendly explanation
The wick of a Japanese candlestick is the thin line extending above or below the body. It shows the highest and lowest prices reached during the period (e.g., 1h, 1 day), but not held.
Example:
If a candle opened at €100, rose to €110, dropped to €95, and closed at €105, the upper wick reaches €110 and the lower wick €95.
Intermediate-level insight
Wicks reflect price rejection: they show where the market tested a level but failed to hold. A long upper wick may indicate selling pressure, and a lower wick buying pressure.
Example:
At resistance, a candle with a long upper wick and small body suggests bullish rejection, often seen as a possible reversal signal.
Advanced perspective
Wicks are crucial for market structure analysis. They reveal absorbed liquidity zones, fakeouts, and institutional reactions. A “stop-hunting wick” often results from algorithms triggering retail stops to capture better entries.
Example:
A lower wick piercing a key support then closing above it, with volume, may indicate strong-hand absorption — a sign of early entry opportunity.
Technical & Chart Analysis
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