What Is a Wick?
A wick (also called a shadow) is the thin line extending from a candlestick’s body to the highest high and lowest low of that period. If a candlestick opened at 1.0900, closed at 1.0920, reached 1.0930, and dipped to 1.0880, then:
- Body: From 1.0900 (open) to 1.0920 (close)
- Upper wick: From 1.0920 (close) to 1.0930 (high)
- Lower wick: From 1.0900 (open) to 1.0880 (low)
The wicks show the extremes the market tested during that time period. They reveal where the market went but failed to hold.
What Wicks Reveal About Market Rejection
A wick represents rejection—the market testing a price level and being pushed back. This is crucial information.
Long upper wick: Buyers pushed price up, but sellers overpowered them. Price was rejected at the high and pulled back down. This shows selling pressure on rallies.
Long lower wick: Sellers pushed price down, but buyers stepped in and recovered price. This shows buying support at lower levels.
Small or no wick: Price moved directionally and held its extreme. Little rejection occurred. Strong conviction moved in that direction.
Example: If a candlestick has a small body and a long lower wick, the market tested lower prices but bounced back up hard. This suggests buyers are protecting lower levels, potentially a reversal signal.
Using Wicks to Identify Support and Resistance
Wicks naturally form at significant price levels. When you see repeated rejection at a price (indicated by wicks), that becomes support or resistance.
Resistance from upper wicks: Multiple candlesticks with long upper wicks at 1.3000 show sellers are stopping rallies at that level. 1.3000 is resistance.
Support from lower wicks: Multiple candlesticks with long lower wicks at 1.2900 show buyers are stopping declines at that level. 1.2900 is support.
This is why price levels with clusters of wicks are significant—they’ve been tested multiple times and rejected.
Wick Patterns in Technical Analysis
Pin Bar (Three-Bar Reversal)
A pin bar is an extreme wick pattern: a very small body with a wick at least 2–3x the body’s size. It signals strong rejection.
- Bullish pin bar: Long lower wick, small body in upper half of range. Shows strong buying at lower levels.
- Bearish pin bar: Long upper wick, small body in lower half of range. Shows strong selling at upper levels.
Pin bars near support/resistance are powerful reversal signals, especially when they close in the opposite direction of the wick (e.g., a lower wick but closing in the upper half).
Hammer and Hanging Man
A hammer is a pin bar in an uptrend context—long lower wick, small body near the top, signaling reversal potential. A hanging man is the same pattern in a downtrend context, also signaling reversal.
Doji
A doji has virtually no body—open and close are nearly equal, but wicks extend in both directions. This signals maximum indecision. Neither buyers nor sellers dominated.
Wicks vs. Other Price Action Signals
Wick vs. Body: The body shows conviction (open-to-close movement). The wick shows testing and rejection. A candlestick with a small body and large wicks shows indecision. A large body and small wicks shows strong directional movement.
Wick vs. Close: The close is what matters most for traders using close-based strategies. But the wick shows what price tested, which is valuable for breakout traders looking at support/resistance.
Practical Examples in Forex
Example 1: Buying Off Support
- GBP/USD approaches 1.2700 support
- Candlestick forms with long lower wick at 1.2665, but closes at 1.2710
- The wick shows sellers tested 1.2665, but buyers rejected that price
- This is a strong buy signal—support is being defended
Example 2: Selling Off Resistance
- EUR/USD approaches 1.0900 resistance
- Candlestick forms with long upper wick to 1.0925, but closes at 1.0890
- The wick shows buyers tested 1.0925, but sellers rejected it
- This is a sell signal—resistance is holding
Combining Wicks With Other Indicators
Wicks are strongest when combined with other signals:
- Wick + Support/Resistance: A wick at a known level is more significant
- Wick + Volume: A wick on low volume may be less meaningful; a wick on high volume shows strong rejection
- Wick + Trend: A long wick against the trend (e.g., upper wick in downtrend) is more significant than in-trend rejection
- Wick + Confluence: Wicks at levels where moving averages, trendlines, and past support align are strongest
Tracking Wick Analysis in Your Journal
When you enter a trade based on wick patterns, note:
- What level were you trading? (Support, resistance, moving average)
- What type of wick formed? (Long lower, long upper, hammer, pin bar, doji)
- What was the volume? (Did the wick form on high or low volume?)
- Did you profit? (Over time, see if wick patterns are predictive for your strategy)
By logging this, you’ll develop intuition for which wick patterns are actually predictive vs. which ones you’re just pattern-matching to lose money on.
Key Takeaways
- Wicks show rejection: They reveal where price was tested and failed to hold.
- Long wicks = indecision: Price traveled far but ended near the open.
- Small wicks = conviction: Price moved in one direction and stayed there.
- Wicks form at levels: Repeated wicks at a price = support or resistance.
- Combine with context: Wicks are strongest when they align with support, resistance, volume, and trend.
Wicks are one of the simplest and most powerful price action tools. They’re literally telling you where the market rejected price. Listen to what they’re saying.
