Big wicks in aud/usd 1h | Forex Factory

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Big wicks in aud/usd 1h

  • #1
  • First Post: Jan 11, 2018 11:57pm Jan 11, 2018 11:57pm
Hello guys!

Just wanted to ask if somebody knows why there is so big wicks on the AUDUSD, if you compere it to eurusd, you will see that eurusd have much cleaner candles, hard do describe what iam asking, plz take a look if u can. Its the 1h timeframe iam talking about, anybody knows why?
  • #2
  • Jan 12, 2018 3:14am Jan 12, 2018 3:14am
Price action on AUDUSD is nothing out of the ordinary. Long upper or lower wicks just indicate price hitting and bouncing from (rejection of) a support or resistance level within the duration of that particular candle. If you care to check earlier H1 history on EURUSD, you will see similar long upper/lower wicks.
  • #3
  • Jan 12, 2018 5:38pm Jan 12, 2018 5:38pm
Quoting GnWFx
Price action on AUDUSD is nothing out of the ordinary. Long upper or lower wicks just indicate price hitting and bouncing from (rejection of) a support or resistance level within the duration of that particular candle. If you care to check earlier H1 history on EURUSD, you will see similar long upper/lower wicks.

Please, check both pairs in tradingview on 1h timesframe, its a HUUUGE difference in the wicks. If you cant see it, let me know and i will post pictrures and try to draw to show what I mean..
  • #4
  • Jan 12, 2018 6:02pm Jan 12, 2018 6:02pm
The wicks are bigger because price moved more above or below the open/close. The reason this happens more on less popular pairs is less overall money in the game. Large orders can move price faster and in a bigger range, because there are less sellers/buyers to act as a counter party to the trade.
There is a ton of money that goes back and forth in the EUR/USD. It stabilizes the price. And makes smaller wicks as a result...
  • #5
  • Jan 12, 2018 6:07pm Jan 12, 2018 6:07pm
The 2 pairs normally move together, but the correlation is never 100%, some event just affected the Aussie more, and buyers took over. I was briefly short this week maybe 1/2 day, then reversed and have been long. Staying that way until the buyers lose control.
  • #6
  • Jan 12, 2018 6:28pm Jan 12, 2018 6:28pm
Quoting Pipfu
The wicks are bigger because price moved more above or below the open/close. The reason this happens more on less popular pairs is less overall money in the game. Large orders can move price faster and in a bigger range, because there are less sellers/buyers to act as a counter party to the trade. There is a ton of money that goes back and forth in the EUR/USD. It stabilizes the price. And makes smaller wicks as a result...

thx VERY much for your post, this was what I thougt , now i KNOW! THANKS!

With other words you can say its "less liqudity" right?
  • #7
  • Last Post: Jan 12, 2018 6:37pm Jan 12, 2018 6:37pm
Quoting Rgrg
{quote} thx VERY much for your post, this was what I thougt , now i KNOW! THANKS! With other words you can say its "less liqudity" right?
Yep.
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