Wick(Wick) Beginner's Guide
Wick is the vertical line above and below the body of a candlestick, showing the highest and lowest prices reached during a 1 period. It helps learners observe price fluctuations but should not be used alone to determine market trends.
Wick What Does It Represent
In a candlestick chart, the Wick is the vertical line extending from both ends of the candlestick body. It may also be called whiskers, shadows, or tails. It records the range of upward or downward price movement relative to the opening and closing prices, with the upper end corresponding to the period high and the lower end to the period low.
How a Candlestick Is Composed
A candlestick is drawn based on the opening, high, low, and closing prices for a given period. The central rectangular section is called the body, reflecting the range between the opening and closing prices; the Wick above and below the body show price extremes reached during the period but not maintained at the closing position.
Length and Interpretive Limitations
A longer lower Wick indicates that the price fell significantly and then recovered before the close, potentially reflecting buying interest after selling pressure. Some technical analysts regard a long Wick as a potential reversal signal, but this pattern cannot confirm a trend on its own and should be evaluated alongside other analytical tools and indicators.
No Wick
A candlestick may also have no Wick, giving it an appearance close to a square or rectangle. This usually means that the opening and closing prices coincide with the high and low prices, respectively, leaving no lines extending beyond the body. Understanding this structure helps distinguish the range shown by the body from the full high-to-low price range.
Original Tutorial
https://www.binance.com/en/academy/glossary/wick
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