A wick is a vertical line on a candlestick chart that shows the highest and lowest prices an asset reached during a specific trading period.
Wicks are also referred to as shadows or whiskers.
A candlestick records four key data points for a given timeframe: open, high, low, and close. The wick above the body shows the highest price reached, while the wick below the body shows the lowest price reached during that period.
The length of a wick can provide useful information about market activity. A long upper wick suggests that the price moved significantly higher but was pushed back down before the period closed. This would indicate strong selling pressure. Conversely, a long lower wick suggests that the price dropped but recovered, which could signal strong buying interest.
When a candlestick has no wicks, it means the opening or closing price coincided with the high or low of that period. These typically appear during strong directional moves where the price moved in one direction without much resistance.
Learning to read wicks and candlestick patterns can help traders better understand price action and market psychology, which may support more informed trading decisions over time.
The lines extending from the colored bar in a candlestick chart that indicate the full low-high range of a ...
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