Small-Wick Trading-Idea

First version smSmallWick Basic v4.2

Just finished today, a first version of the Expert Advisor (EA) for the SmallWick idea.

I'm posting a first version here without explanations because I've written about it occasionally...

- It's designed to trade only the H4 and D1 timeframes, regardless of which chart the EA is started on.
I'll probably make some more changes to the EA, fix any bugs, so that members who want to study the EA will have fun.

Extremely thankful to you George for your time and for sharing this wonderful SmallWick Expert Advisorwith the ForexFactory community.

It is your right decison to have a separate thread for Small Wick trading idea as it will help keep both the the threads clean and organized.

Small Wick Trading – A Detailed Guide for All Traders (Updated – March 2026)

Hello Fellow Traders from Around the World!

Since last few weeks I have been digging deep AGAIN into the SmallWick idea by George (SwingMan). I am happy to share this full, easy to read guide about the Small Wick System. Many of you come from different countries, and English might not be your first language, so I wrote everything in very simple words. No hard or fancy terms here. I have tried my best to explain all the ideas by legendary George (SwingMan) presented in this thread and his posts, pull them together, and made sure nothing important is missed, including exactly how the indicator plots/ prints signals and draws levels.

This indicator, smGC SmallWickSignals_v1.0, is coded and selflessly shared by SwingMan (George). It helps you spot when the market is moving with strong power in one direction. Small Wicks are the key signals, they show when one side (buyers or sellers) is winning easily, without much of a fight.

I will start with the anatomy of the candle and what Small Wick candles are in general. Then I will try to explain through every part: how to use the indicator, the rules for trades, the special filters and exceptions George introduced, and more. I have tried not to miss any point from George’s posts in the thread, so please read slowly, and you will understand everything.

This guide is for everyone: new traders, experienced traders, scalpers, or swing traders.

What Are Small Wick Candles? The Basic Idea
Every candle or bar on a price chart shows a short battle between buyers and sellers during a certain time period, on any timeframe from M1 to MN. The thick middle part of the candle, called the body, tells us two simple things: where the price started (the open) and where it finished (the close) for that period. The thin lines above and below the body are called wicks or shadows. These wicks show how far the price went up or down but then got pushed back by the other side.

A Small Wick candle is different and special. In this candle, the wicks are very short, often on both sides, but especially the one opposite the direction of the move, almost like they’re not there. This means one side of the market was much stronger. The other side tried to fight but failed badly.

1. In a bullish (green/up) candle, if the upper wick is small (or absent), it means buyers were in full control. They pushed the price up, and sellers could not pull it back down much from the high.
2. In a bearish (red/down) candle, if the lower wick is small (or absent), it means sellers were in full control. They pushed the price down, and buyers could not push it back up much from the low.

Compare this to a normal candle with big wicks. Big wicks mean there was a lot of fight and rejection. Price went far in one direction, but the other side said “no” and sent it back. This shows the market was not sure. Small Wicks are the opposite: clean dominance. One side won the battle quickly and easily.

The system loves these candles because they point to high probability moves that continue in the same direction. It’s not about guessing turns, it’s about joining the winner when the fight is over.

How Small Wick Candles Are Formed – The Story Behind Them

Small Wicks don’t happen by accident. They appear when the market becomes imbalanced. One side gets very strong and aggressive right from the start of the candle, and they keep that power until the end. Let’s look at Bullish and Bearish Small Wicks.

Bullish Small Wick (for buys, price going up):

1. The candle often opens near its lowest point for that time (small lower wick).
2. Buyers come in with a lot of force and push the price up strongly.
3. Sellers try to stop it by selling, but their push is weak.
4. The price closes near the high of the candle (small or no upper wick).
5. Overall, minimal wicks show sellers failed to create much rejection.

Bearish Small Wick (for sells, price going down):

1. The candle often opens near its highest point for that time (small upper wick).
2. Sellers come in with strong force and push the price down fast.
3. Buyers try to stop it by buying, but they are too weak.
4. The price closes near the low of the candle (small or no lower wick).
5. Overall, minimal wicks show buyers failed to create much rejection.

These Small Wick candles appear mostly in trending markets, during big breakouts, or when momentum is very high. The market is moving in one clear direction, so one side stays in charge. But in sideways markets (when price goes up and down without a clear direction), we won’t see many Small Wicks candles. Why? Because buyers and sellers are fighting equally all the time, so wicks become long on both sides.

What we can conculde from all above - Candles with Small Wicks show “the path of least resistance.” There is no big fight, the winning side cleared the road. This often means the price will keep going the same way. Traders who see this can join early and ride with low worry.

How the Indicator Finds SmallWick Candles

The Small Wick indicator by George (SwingMan) is a helpful tool that finds these candles for us. It does not just look at how the candle looks on the screen. I think the indicator code uses complex nternal calculations in a smart way to spot them.

Here is what it does:

1. It first checks the trend using two Linear Weighted Moving Averages (on open and close prices): short 5-period and long 30-period. Both must be sloping the same way (up for buys, down for sells).
2. Then it calculates HalfRange — half of a smoothed average of recent candle ranges (high minus low). This makes the indicator adapt: in quiet markets the wick must be super small to count, in volatile markets it can be a little bigger but still small relative to the market.
3. For a buy signal: open must be very close to the low, candle range at least HalfRange tall, trend up on both averages.
4. For a sell signal: open very close to the high, candle range at least HalfRange tall, trend down on both averages.

When conditions are met, it draws object on the candle and plot tarde paramenters on the bottom right of the screen.
- Entry arrow at low + HalfRange (buy) or high – HalfRange (sell)
- TP1: Entry + 1 x HalfRange (buy) / Entry – 1 x HalfRange (sell)
- TP2: Entry + 2 × HalfRange (buy) / - 2 × HalfRange (sell)
- Stop at entry – 2 × HalfRange (buy) / + 2 × HalfRange (sell)

This is why it is so good: it finds real dominance, not just candles that look small by eye. It works on all markets because it always matches the current energy.

One important thing: You may see a signal appear while the candle is still open. Then it goes away. This is normal! The candle is still changing, wicks can grow, the range can change. The indicator is checking live.
Some may confuse it with REPAINTING (but its not the case)

Full Trade Plan – Entry, Stop, and Profits Explained

When the indicator gives a signal, it shows you clear levels for your trade. Everything displayed is based on the HalfRange, so it fits the market right now.

Here is the simple breakdown for a buy signal (bullish Small Wick):

1. Entry Price: low of the signal candle + HalfRange. Price should keep going up from here.
2. Stop Loss (SL): (2 x HalfRange) below entry. Safety net — gives room for small moves but protects money.
3. TP1 (First Profit): entry + (1 x HalfRange). Take some profit here to lock in a win and lower worry.
4. TP2 (Main Target): entry + (2 x HalfRange). Let the rest run to catch the full continuation.

The numbers are easy: Risk to reward is 1:0.75
Requires more winning trades as compared to few winning streaks (57%~58%)

After you hit TP1, move your stop loss to breakeven (your entry price) plus a small extra (like 20 points). Now the trade has no risk, you cannot lose money. It is “free” and can only make more. This is how you protect capital and let winners run.

For sell signals its the opposite.

The Moving Averages That Help You Stay in the Trend

Small Wicks are strong, but they work best when you plot two Linear Weighted Moving Averages (LWMA) to confirm direction. These give more importance to newest prices, so they react fast.

1. The 5-period LWMA (fast one) is like your speed guide. In a buy setup, price should stay above this line most of the time.
2. The 30-period LWMA (slow one) shows the main trend. For buys, price and fast line should both be above this slow line.

This makes a “highway” on your chart:

1. Fast line = inner fast lane for quick moves.
2. Slow line = the big road for overall direction.

When Small Wicks appear in this setup (price > 5 LWMA > 30 LWMA for buys), the trade has high chance to work. It keeps you out of flat, choppy markets where nothing happens.

Small Wick + good trend = more wins and less stress.

The 6 Out of 8 Rule – Your Simple Way to Check Probability

This is one of the best parts, an easy count that gives real odds.

Look at the last 8 candles on your chart.

1. Count how many are the same colour: green (up) or red (down).
2. If 6 or more are the same colour, and many of them are Small Wicks, this is a “momentum phase.”

Why 8 candles? It is the right number to see a short “burst” of movement. Six out of eight means the direction is strong.

The 1 or 2 different candles? They are usually just small pauses for taking profits, not a real change.

When Small Wicks are in those 6 same-colour candles, the CHANCE for the next candle to continue is very high. This rule helps time your entry in the middle of the good sequence, best around candle 3, 4, or 5.

It turns one signal into a group of strong ones. You are not guessing, the numbers show the market is agreeing.

The Important Filters – How to Stay Safe and Use Special Exceptions

To avoid bad trades, there are simple checks, like road signs to keep you safe.

1. The Third Bar Rule: The strongest part of a new move is the first 3 candles after the moving averages line up. After that, easy profits get smaller, risk of pullback higher. So enter early.
2. The Slope Check: Look at how steep the 5 LWMA is. If it is tilting strongly up or down, power is good, go ahead. If flat, even a Small Wick may not work well. Skip it.
3. The Donchian Channel Rule + George’s Special Exception (Use the Indicator provided by George)
   
   Donchian Channel shows highest high and lowest low of last 30 candles.
   
   Normal rule: When price hits a new high/low, big traders often take profits → pause or quick move opposite way. Stop trading main trend for next 6 candles to let it settle.
   
   George’s Exception (direct quotes):
   

   Quote

   Disliked

   There are a major exception… first 6 bars after a bar reaches the upper Donchian Channel… expect a rebound and a trend reversal, so you should not make long trades and only short trades. Statistically, these trades have a higher chance…

   Quote

   Disliked

   When the long term 30 day moving average (MA30) is trending upwards, you should avoid short trades. An exception would be a signal within the first six bars where the upper Donchian Channel is reached.

   Quote

   Disliked

   If you pee against the wind, you’ll get wet… since the Donchian Channel has been reached, my ‘Small-Wick Trading Idea’ can be applied to individual bars.

   
   Many of us notice: After upper Donchian hit in uptrend, price often keeps making new highs (channel moves higher), continuation most of the time in strong trends.
   
   So the exception is optional:
   - In first 6 bars after upper hit: ignore bullish Small Wick signals → only take short trades (quick rebound scalp)
   - If no bearish signal and new highs continue → sit out the window or revert to normal trend rules after 6 six candles
   - Always small position size, tight stop (counter-trend nature)
   - Same logic reversed for lower Donchian in downtrends
   
   This turns dangerous extreme spots into good scalps without fully fighting the wind.

How to Choose the Right Timeframe

You can use this on any chart, but timeframe changes how it works.

1. Higher timeframes (H4, D1, W1): Fewer signals, but more reliable. Each candle has more real information, less fake moves. Good if you don’t want to watch screen all day.
2. Lower timeframes (M15, M30): Many signals, more trades. Perfect for scalpers who like fast action. But more noise.
   Best way: Use higher timeframe to check main trend and 6 out of 8 count. Then use lower timeframe to find exact Small Wick signal. Trades always with the big flow.

How to Protect Your Money – Simple Risk Rules
Trading has risks, so this part is very important.

1. Risk only a small amount on each trade: Like 0.5% of your total money. Even if you lose a few, it does not hurt much.
2. Use HalfRange for everything: Stops and targets fit the market. Busy times = bigger, quiet times = smaller.
3. After TP1, move stop to breakeven. Protects starting money.
4. Even good signals can lose (news, surprises). But follow rules every time there will be more wins than losses over time.

Key is consistency. Do not chase big wins. Be patient, follow plan, account grows slowly but surely.
Play on demo account. Customize for your pairs/timeframes.


Why This System Works So Well – The Big Picture

Small Wick candles show start of strong moves, weak pushback, clear direction. By adding MA alignment, 6/8 count, Donchian filters (with exception), good risk management rules = Full system for continuation trades, not guessing reversals.

1. Psychology: big money pushing without stoppers
2. Numbers: 6/8 gives real edge
3. Flexibility: HalfRange changes with market — works everywhere

Not about 100% right, about being in right place when market is clear.

Ideas for Enhancement – What Can be Added Next?

Small Wick is already strong, elegant, practical.

A very kind and humble request to George, if time and health permits, further development on this SmallWick idea would be great.

Ideas:

1. Dashboard to Monitor multiple pairs/timeframes, highlight best setups (6/8 count, MA alignment, Donchian status)
2. Expert Advisor for Automatic trade execution, move SL to breakeven, manage trades etc (George has already released first version for Small Wick Expert Advisor today i.e March 03, 2026)

Special Thanks to George (SwingMan) – The Man Behind It

Before I finish, a big thank you to George again. You have coded SmallWick indicator, Expert Advisor and have shared selflessly in this thread.

You explained clearly: Clean momentum, HalfRange for risk, Exit rules, Pee against the wind analogy , Donchian exception.
You have passion for helping traders of all levels.

Thanks to you, we have a professional system that is easy to use. George, you are a true legend in the trading community.

Any further thoughts from your side, further improvemenst / refinements, especially on Golden Cross Idea ,Small Wick idea, Slpe Permission Indcitaor, Donchian exceptions, or counter trend filtering would be greatly appreciated.

My Final Thoughts - Start Using It (Share Charts)

The Small Wick System is more than an indicator. It is a complete way to trade smart. You learn to see when one side is in control, join the trend, use numbers for confidence, protect money.

Practice on demo. Start small. Watch clean candles, good alignments, filters (especially Donchian). You will see how these simple ideas change your trading.

I hope it helps you make more profits and less stress. If you have questions, ask in comments. Please share your charts as it will help refine the Small Wick idea further.

Trade Safe, Trade with the Wind!

Best of luck to all and wishing everyone loads of PIP$.

Hello Everyone,
I have attached the indicators and the template to make it easier for everyone to downlaod then from one place.
Extract the .rar file
Indicators need to go in the MQL4>Indicators folder
Template in the templates folder
Restart the MT4
Load the template and it should be similar to the image attached

Hope its helps everyone.

Thank you so much for your excellent contribution!

Hello George, first of all, thank you for your job.
But isn't what you call Small Wick ultimately what they call Pin candle?
A bullish pin candle has a long below wick and a short upper wick.
A bearish pin candle has a long upper wick and a short below wick.
Isn't that right?

I will try you system in demo.

Hello Paul,

Thanks for your interest in the SmallWick Trading idea and for your question. I have been through this stage when I started a year ago and I understand why it can be confusing at first glance.

You already have a very good grasp of trading charts with candlesticks alone without the indicators and thats real edge as compared to new traders like me.

I am learning every day (health and time permitting) and as per my limited understanding, after what I have studied / understood from the George's post and from my own research about the SmallWick Bars. I will try to clarify the difference between a Pin Bar and SmallWick bar (as per George's indicator)

What is a Pin Bar?
A Pin Bar (short for Pinocchio Bar) is a rejection candle. The name comes from the story of Pinocchio, when he lies, his nose grows long.
In trading, the long wick (the nose) represents price that tried to move in one direction but was rejected, meaning the move was FALSE.

1. Bullish Pin Bar: Long lower wick, small body near the top.
   Price went down, was rejected strongly, and closed near the high.
2. Bearish Pin Bar: Long upper wick, small body near the bottom.
   Price went up, was rejected, and closed near the low.

The key idea of a pin bar is rejection. Price tried to move in one direction and failed.

What is a Small Wick Bar (in this system)?
A Small Wick bar is not based on visual rejection. It is defined intelligently/ mathematically in the code using range proportions and a half range calculation to determine whether the wick size qualifies. (One need to need 53 pages in the old thread to get the concept of Half Range)

The idea of the SmallWick bar is momentum, not rejection.

1. Bullish Small Wick: Strong body, very small wicks, close near the high. Buyers controlled the candle almost completely, with very little pullback.
2. Bearish Small Wick: Strong body, very small wicks, close near the low. Sellers dominated from open to close.

So instead of Price was rejected , the message is Price moved strongly in one direction with conviction.

Why They Can Look Similar
Sometimes a SmallWick bar may visually resemble a pin bar. But internally, the classification is rule based. The Small Wick logic checks proportions using the half range calculation. So even if it looks like a pin bar to the eye, mathematically it may still qualify as a Small Wick bar according to the system rules.

The core difference in simple terms
Pin Bar = Rejection
Small Wick Bar = momentum.

When trading SmallWick Idea slope of both Average 5 LWMA and Average 30LWMA are very important to take into account.

Please test it on demo and observe how it behaves in trending vs ranging conditions, the momentum aspect of the Small Wick bars becomes much clearer in live movement.

Hope this helps.

Thank you very much for your exhaustive answer. It is really a new look to the candlestick.

New version smSmallWick Continue v5.0

This version no longer stops at TP1 and the trade continues until the trailing stop of 3*halfRange is reached.

In the next version, we will test whether a filter using the slope indicator could be beneficial.

Hi. On all my backtests and demo testing thus far I only hit SL. When the trade opens and goes into profit the trailing stop takes to long to move into profit and we get stopped out in a loss every time. Are there better settings you could recommend to test?

If your trailing stop is consistently too slow and you're getting stopped at breakeven or SL before TP, it might not be the strategy; it could be execution lag. How are you running this? If it's an EA on your home PC, every tick has to travel to your broker and back before the trailing stop adjusts. On a fast-moving pair, that's
100-300ms round trip on a home connection vs 1-5ms from a server near your broker. That delay means your trailing stop is always reacting to where price was, not where it is. Try running it on a demo on a VPS near your broker's server and compare the fills; you might find the strategy works fine, it's just the infrastructure letting
you down.

Hi. I'm still a little confused by what each of the symbols represent on each of these price bars? The circle, two blue line symbols above and the x symbol.

Thanks

Blue = Entry UP
Red = Entry DN


Circle = Entry Price
x = Exit
First = TP 1 Price
Second = TP 2 Price

I have marked them on the chart to make it easier to you Hope it helps.

Thank you

I love how it combines candle dominance, MA alignment, the 6/8 momentum count, and Donchian filters really shows the path of least resistance.
I’ve started applying it on demo and already see how much cleaner and disciplined my trades feel. Excited to track results and share charts too!

thanks for smSmallWick Continue v5.0 ea dear Swing Man ,cluld you add time filter to ea please....

Could you please describe exactly what you want?
London time, New York time, hourly interval?

I don't think that's necessary, though.

I thought hourly interval,if I would appreciate it if you could do that

Hi to SwingMan and ENoris. Thank you so much. Very user friendly.
Getting familiar with the setup last week.



Really appreciate all your hard work. If it's possible, could you please add an alert to the indicator?
Looking forward to checking this out more. Hope you're having a good weekend.

My VPS is 3.2ms so its not the lag.