What do Candlestick Wicks Represent? | Forex Factory

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What do Candlestick Wicks Represent?

  • #1
  • First Post: Feb 15, 2012 8:44pm Feb 15, 2012 8:44pm
Hi,

Do the large pin bar wicks up/down represent supply/demand and imbalance between the 2 signals if the buyers or sellers have the edge over the other at certain points?

Also, do wicks compared to a open/close price signal that they were potential bidders willing to bid and buy/sell at that price which they can do again in the future which was not met at that time?

Thanks.
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  • #2
  • Feb 15, 2012 8:56pm Feb 15, 2012 8:56pm
I'm not sure what you're asking, the "wicks" represent the range of prices, during which trades were occurring at those range of prices, and the open close prices are represented by the bodies of the candle (or the ticks if you're looking at bars)

I suppose depending on what strategy you use that you can take a candle from a higher TF (like D1) and estimate where the S&D zones are. Not my particular strategy but I've seen others discuss similar methods.
  • #3
  • Feb 15, 2012 9:09pm Feb 15, 2012 9:09pm
So, what your saying is that the wicks are only a range of prices what does that mean they were buyers and sellers willing to agree with price until it rose or fell to be agreed below?

The way I view wicks is that they will most probable be revisted sometime in the future at some point giving you a price projection point.
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  • #4
  • Feb 15, 2012 11:50pm Feb 15, 2012 11:50pm
well i am not sure what you are asking but the wicks of candles are either the lowest for the time period or the highest for the time period, Usually wicks means that it reached that priced but was pushed down.

a candle represents open high low close if there is a bearish wick means that it reached a high and it closed considerably away from that price range, so in other words it signals rejection
AVT INVENIAM VIAM AVT FACIAM
  • #5
  • Feb 16, 2012 4:54am Feb 16, 2012 4:54am
rejection or consumption
  • #6
  • Feb 18, 2012 12:25pm Feb 18, 2012 12:25pm
What I understand of wicks that say you have a hammer formation the open and close are where buyers/sellers were willing to agree on price however those same buyers and sellers were willing to bid price beyond and below those levels for it to be rejected and bids to be accepted on another price if you get me. This imo gives an indication and price will revisit that zone and a previous bidder maybe days ago bids at the same level for it to be confirmed at a later time date. I learned this from Mark Douglas traders psychology seminar.
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  • #7
  • Feb 25, 2012 2:48am Feb 25, 2012 2:48am
Quoting Pipanator
Hi,

Do the large pin bar wicks up/down represent supply/demand and imbalance between the 2 signals if the buyers or sellers have the edge over the other at certain points?
Hi,
Candlestick wicks represent a battle for supremacy between the bulls and bears represented by a thrust by one party and a successful counterattack by the other side. Two example charts are shown - one of a shooting star - where the bulls were doused by the bears at higher levels. In the other example of a dragonfly doji, the bears were having a good time taking prices to low levels until the bulls came rampaging back and spoilt the party by taking prices up again.
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: dragonfly-doji.png Size: 50 KB
  • #8
  • Feb 25, 2012 12:29pm Feb 25, 2012 12:29pm
Quoting devshishya
Hi,
Candlestick wicks represent a battle for supremacy between the bulls and bears represented by a thrust by one party and a successful counterattack by the other side. Two example charts are shown - one of a shooting star - where the bulls were doused by the bears at higher levels. In the other example of a dragonfly doji, the bears were having a good time taking prices to low levels until the bulls came rampaging back and spoilt the party by taking prices up again.
Your missing the core point here I am saying that bidders whos transactions previously be in minutes or days ago are later confirmed at a later date imo so price will revist and agree on that move its similar to a gap price gaps up or down and price revists it as support or resistance towards a new trend.
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  • #9
  • Feb 25, 2012 1:12pm Feb 25, 2012 1:12pm
Quoting Pipanator
Do the large pin bar wicks up/down represent supply/demand and imbalance between the 2 signals if the buyers or sellers have the edge over the other at certain points?

Also, do wicks compared to a open/close price signal that they were potential bidders willing to bid and buy/sell at that price which they can do again in the future which was not met at that time?
I am rather confused about how you have questioned this. However, I think you need to look at how candles are formed and their inner structure. If you see a wick, it shows that within that period of time (say an hour - an hourly pin bar) price was at a level, shot up/down and came back down/up again showing that there were more willing buyers/sellers in the direction that price visited - showing that there was somewhat an imbalance. This can mean a few things and if you study SD you should know what these things are.

Next time you see a pin bar mark, out a box around it and switch to a slower TF to see what has happened inside of it. Here is an example for you.

Have a good one.

..
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Click to Enlarge Name: pins2.gif Size: 22 KB
  • #10
  • Feb 25, 2012 2:16pm Feb 25, 2012 2:16pm
Quoting Tyoon
I am rather confused about how you have questioned this. However, I think you need to look at how candles are formed and their inner structure. If you see a wick, it shows that within that period of time (say an hour - an hourly pin bar) price was at a level, shot up/down and came back down/up again showing that there were more willing buyers/sellers in the direction that price visited - showing that there was somewhat an imbalance. This can mean a few things and if you study SD you should know what these things are.

Next time you see a pin bar...
I think also that as such wicks dont represent anything more than a kind of a trading range where bulls and the bears are somewhat balanced (depending how candle looks like). There are wicks, dojis, hammers, etc on every chart all over the place every single day. As such candles are an artificial (but useful) way of cutting price action into pieces related to the timeframe they represent.

I think its the context that matters. If you find a long wick, doji, hammer, etc near the trendline, pivot, fibs or significant SR-level, it is more likely that it may represent something significant.
  • #11
  • Feb 25, 2012 2:33pm Feb 25, 2012 2:33pm
Candlestick wicks represent indecision..
A picture is worth 1000 words.. A chart is worth 1000 pictures
  • #12
  • Feb 26, 2012 6:14am Feb 26, 2012 6:14am
On a less serious note.. for shorter term trading i used to refer to them as "deathspikes"..

Today when seeing similar deathspikes.. well it depends on the timeframe of your chart. Seeing deathspikes on longer timeframe charts are a normal and natural thing, and they happen often.

On shorter timeframes though.. depends on the volatility. If you see them on slower days (as have been over the last few months) they generally form very, very quickly, and indicate very strong pressure on the other side of the SR (for at least that moment). As in the market ran in a particular direction and was shot down almost (normal healthy trends don't usually get shot down).

On more volatilite days.. well.. deathspikes.
  • #13
  • Aug 4, 2012 12:43am Aug 4, 2012 12:43am
After a lot of research the wicks indicate previous interest for bidders which later either get accepted or rejected bit like ebay or any auction.
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  • #14
  • Aug 4, 2012 4:19pm Aug 4, 2012 4:19pm
This reminds me of a screenshot I used for shorting recently.

When zoomed in, wicks show a battle if seen at predetermined support/resistance levels. In the screenshot G/U had sellers of resistance at 1.5580. The 3rd box is a wick, just took a few minutes longer than the others

http://i46.tinypic.com/2zi6cfa.jpg
  • #15
  • Last Post: Aug 4, 2012 7:26pm Aug 4, 2012 7:26pm
I personally use wicks everyday, they are much better than macd's ma's and all that stuff, candle wick is an indication of lost battle by bull/bear. They often allow you to risk more than you would in a normal session as for me I see them as rejections. Imagine bearish trend lets say on daily, and you see gradually formed smaller full bodys and shorter lower shadows, that is a clear indication of price loosing momentum. The closer we are to support and more wicks you can see than there is more chance that price will change to bullish one. Wicks are powerful so are candles.
Emerald above me picked great example how wicks can show you that momentum is loosing its strenght and price about to reverse - this is exactly what wicks are,
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