What is a Wick in Candlestick Charts?
Quick Answer: A wick (or shadow) shows intraperiod highs and lows on candlesticks, revealing where price was rejected by opposing order flow.
Understanding Wick Dynamics
A candle's wick (or shadow) shows the highest and lowest traded prices during the period. Long wicks indicate rejection and can reveal liquidity grabs, stop runs, or aggressive counter-order flow.
Reading Wicks
Upper wicks suggest selling pressure above; lower wicks point to buying interest below. Combine wick analysis with smart money concepts and imbalances to gauge intent.
Execution Edge
Use wick rejections near key levels to fine-tune entries. Lower-time-frame confirmation helps distinguish meaningful rejections from random volatility.
Context Matters
Wicks can be misleading in thin liquidity or around news events. Always consider session timing, volume, and macro backdrop before interpreting them as reversal signals.
Avoid Overfitting
Not every wick equates to smart-money activity. Track statistics of your wick-based setups to ensure edge exists.
Learn More About Forex Trading
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