Crypto Beginner, Day 14: What Signals Do Long Upper and Lower Wicks Really Hide?
I used to look at BTC candlesticks and only check whether the final candle was red or green.
Later, I realized that candlesticks don’t just show whether prices went up or down—they can also reflect how prices moved over a given period.
Today, I’m learning about two common patterns: long upper wicks and long lower wicks.
1️⃣ Long upper wick: The price rises, then gets pushed back down
Suppose BTC briefly rises to $70,500 but closes back near $70,000.
A relatively long wick may form above the candlestick.
This means the price reached a higher level during that period but wasn’t able to stay there.
If this happens near a previous resistance level and the price pulls back after rising, it’s worth watching to see whether the rally has run into resistance.
But a long upper wick doesn’t mean the price will definitely fall—it could just be normal fluctuation.
2️⃣ Long lower wick: The price drops, then bounces back
Suppose BTC briefly falls to $69,500, then recovers and closes near $70,000.
A relatively long wick may form below the candlestick.
This means the price fell lower but then bounced back.
If this happens near a previous support level, it may indicate that buyers are stepping in around that area.
However, this doesn’t mean the price will definitely rise.
3️⃣ What really matters is looking at the wicks in the context of the market
I now focus on three questions:
📌 First: Where did the wick appear?
A wick near an important support or resistance level is usually more worth studying than one in an area of ordinary price fluctuations.
📌 Second: Did trading volume change?
If a long upper wick appears alongside a clear increase in trading volume, it means trading was active during that period. But that alone isn’t enough to conclude that major players are selling.
📌 Third: What happens with the next candlestick?
If the price continues to strengthen after a long lower wick appears, that may further confirm the rebound signal.
If the next candlestick immediately breaks below the wick’s low, be wary that the previous rebound may not hold.
My biggest takeaway today:
A long upper wick doesn’t mean the price must fall, and a long lower wick doesn’t mean it must rise. Candlestick patterns are just clues. The price level, trading volume, and what happens next are what you need to consider together.
Learn to observe, and don’t rush to conclusions.
I used to look at BTC candlesticks and only check whether the final candle was red or green.
Later, I realized that candlesticks don’t just show whether prices went up or down—they can also reflect how prices moved over a given period.
Today, I’m learning about two common patterns: long upper wicks and long lower wicks.
1️⃣ Long upper wick: The price rises, then gets pushed back down
Suppose BTC briefly rises to $70,500 but closes back near $70,000.
A relatively long wick may form above the candlestick.
This means the price reached a higher level during that period but wasn’t able to stay there.
If this happens near a previous resistance level and the price pulls back after rising, it’s worth watching to see whether the rally has run into resistance.
But a long upper wick doesn’t mean the price will definitely fall—it could just be normal fluctuation.
2️⃣ Long lower wick: The price drops, then bounces back
Suppose BTC briefly falls to $69,500, then recovers and closes near $70,000.
A relatively long wick may form below the candlestick.
This means the price fell lower but then bounced back.
If this happens near a previous support level, it may indicate that buyers are stepping in around that area.
However, this doesn’t mean the price will definitely rise.
3️⃣ What really matters is looking at the wicks in the context of the market
I now focus on three questions:
📌 First: Where did the wick appear?
A wick near an important support or resistance level is usually more worth studying than one in an area of ordinary price fluctuations.
📌 Second: Did trading volume change?
If a long upper wick appears alongside a clear increase in trading volume, it means trading was active during that period. But that alone isn’t enough to conclude that major players are selling.
📌 Third: What happens with the next candlestick?
If the price continues to strengthen after a long lower wick appears, that may further confirm the rebound signal.
If the next candlestick immediately breaks below the wick’s low, be wary that the previous rebound may not hold.
My biggest takeaway today:
A long upper wick doesn’t mean the price must fall, and a long lower wick doesn’t mean it must rise. Candlestick patterns are just clues. The price level, trading volume, and what happens next are what you need to consider together.
Learn to observe, and don’t rush to conclusions.