A wick tells you where price went. The close tells you where it was accepted.
$BNB shows the difference this week. The daily lows kept stepping down:
- Nov 8: low 678.37, close 685.21
- Nov 9: low 673.31, close 691.44
- Nov 10: low 670.06, close 680.58
- Nov 11: low 676.77, close 679.76
Four wicks under 680 in four days. The first three times, buyers pushed it back above 680 by the close. Wednesday didn't. 679.76 is the lowest close in two weeks. That slipping close is the real change, not the wicks.
How I use it:
- Levels come from closes. Stops go beyond the wicks
- A wick under support is a test. A close under it is a break
- If your stop sits right on a level, one normal wick takes you out
BNB is at 678.5 now, just under that close.
Where do you put your stop: under the wick or under the close? NFA.
$BNB shows the difference this week. The daily lows kept stepping down:
- Nov 8: low 678.37, close 685.21
- Nov 9: low 673.31, close 691.44
- Nov 10: low 670.06, close 680.58
- Nov 11: low 676.77, close 679.76
Four wicks under 680 in four days. The first three times, buyers pushed it back above 680 by the close. Wednesday didn't. 679.76 is the lowest close in two weeks. That slipping close is the real change, not the wicks.
How I use it:
- Levels come from closes. Stops go beyond the wicks
- A wick under support is a test. A close under it is a break
- If your stop sits right on a level, one normal wick takes you out
BNB is at 678.5 now, just under that close.
Where do you put your stop: under the wick or under the close? NFA.
