What is a Wick in Candlestick Charts?

Understanding Wick Dynamics

A candlestick wick (also called shadow or tail) is the thin line above and below the candle body showing the highest and lowest prices during that period. Wicks reveal intraperiod volatility and rejection—prices visited but not sustained. Long wicks indicate strong rejection and often signal liquidity grabs, stop hunts, or counter-trend order flow.

Reading Wick Signals

• Upper wicks: Show selling pressure that pushed price down from the high. Long upper wicks at resistance suggest rejection and potential reversal lower
• Lower wicks: Reveal buying interest that absorbed selling and pushed price up from the low. Long lower wicks at support indicate buyers defending
• Wick length: Longer wicks relative to body size signal stronger rejection. Wicks 2-3x body length show significant disagreement
• Location matters: Wicks at key support/resistance, round numbers, or prior extremes carry more weight than mid-range wicks

Context is Critical

Wicks alone don't tell the full story. During thin liquidity (Asian hours, holidays) or around news events, wicks can be misleading—reflecting low participation or algorithmic whipsaws rather than genuine sentiment. Always consider session timing, volume, and broader context before treating wicks as actionable signals.

Advanced Guidance

Build a repeatable, rules‑based process so decisions are consistent across sessions and instruments. Start from context (higher‑timeframe structure, positioning, macro tone), then define precise triggers and invalidation on execution charts. Track spread and depth so your order type matches conditions. Pre‑compute scenarios (breakout, fakeout, mean‑revert) and map actions for each to reduce hesitation.

Execution Framework

• Plan entries at levels with confluence (structure, momentum, time‑of‑day).
• Place stops beyond the logical invalidation, not arbitrary distances.
• Target at least 2–3R; scale out methodically and trail remainder.
• Avoid thin liquidity windows unless the setup explicitly requires it.
• Record slippage and spreads; poor fills can erase edge.

Review Loop

• Journal setups by session and pair to learn where they excel.
• Tag trades by catalyst (news, trend continuation, range breakout).
• Recalculate expectancy monthly; prune underperforming variants.

Risk Controls

Keep daily loss limits, reduce size after consecutive losses, and pause during regime shifts. Survival enables compounding; treat discipline and execution quality as part of your edge.