11. The Power Wicks
You’ve heard it whispered in the hallowed halls of finance, scrawled on bathroom stalls in trading firms, and probably even mumbled by your grandma if she’s secretly a forex guru: “The trend is your friend.”
And let me tell you, it’s not just a catchy little rhyme your mentor uses to sound smart. It’s the absolute, unadulterated truth. Because trying to trade against the trend is like trying to convince a toddler that broccoli is delicious: you’re going to lose, you’re going to get messy, and you’re going to end up crying into your pint of ice cream.
- Is the current trend bullish or bearish?
2. Is the main trend bullish or bearish on selected timeframe?
3. Where is price now? where are the keylevels?
4. Are there any Price Action?
5. Are there any failed Price Action?
6. Is there evidence that the market is getting rid of buyers or sellers?
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The Golden Rule: Have a Plan Before You Enter!
No matter which method you choose, the most crucial aspect of taking profit is to define your take-profit point before you enter the trade. This prevents emotional decisions and ensures you’re trading with discipline. It’s part of your “best setup” plan!
11. The Power of Wicks
The wicks (also known as shadows or tails) of a candlestick are incredibly potent components of price action analysis, often revealing more about market sentiment and potential future direction than the candle body itself. While the body shows the open and close, the wicks graphically represent the extremes to which price was pushed during a specific period and, crucially, where it was rejected.
What are Wicks?
A candlestick consists of a “body” (representing the open and close prices) and “wicks” extending above and/or below the body (representing the high and low prices reached during that period).
Upper Wick: The line extending from the top of the body to the high of the period. It shows the highest price reached but where buying pressure ultimately failed, and sellers took control.
Lower Wick: The line extending from the bottom of the body to the low of the period. It shows the lowest price reached but where selling pressure ultimately failed, and buyers took control.
The length and position of the wicks relative to the body and other wicks provide crucial clues about the supply and demand dynamics at play.
The Power of Wicks: Why They Are So Significant
The power of wicks lies in their direct and immediate illustration of price rejection and the underlying battle between buyers and sellers:
Direct Visual of Price Rejection: This is the primary power. A long wick indicates that price moved significantly in one direction but was then strongly pushed back, failing to hold at its extreme. It’s a clear visual of a level being tested and rejected by the opposing force.
Long Upper Wick: Signifies that buyers pushed price higher, but strong selling pressure emerged, pushing price back down towards the opening/closing level. This suggests strong bearishness or significant resistance to higher prices.
Long Lower Wick: Signifies that sellers pushed price lower, but strong buying pressure emerged, pushing price back up towards the opening/closing level. This suggests strong bullishness or significant support at lower prices.
Indicators of Indecision or Exhaustion: Wicks can reveal periods of significant struggle. Very long wicks in both directions (e.g., a Doji with long wicks) indicate extreme indecision and volatility, suggesting a potential turning point or consolidation where neither side can gain sustained control.
Identifying Market Exhaustion: A long wick after a prolonged move in one direction can signal that the prevailing force (buyers in an uptrend, sellers in a downtrend) is losing steam. For example, a long upper wick after a strong uptrend suggests that buyers are becoming exhausted and sellers are stepping in aggressively, potentially signaling a reversal or at least a significant pullback.
Confirming Support and Resistance: Wicks that repeatedly test and fail to close beyond a specific price level powerfully confirm the strength and validity of that support or resistance zone. Each long wick touching and retracting from a level reinforces its significance as a barrier that the market respects.
Setting Clear Stop Loss Levels: The extremes of wicks often provide logical and precise points for placing stop-loss orders. If price moves decisively beyond the tip of a significant rejection wick, it indicates that the initial analysis based on that rejection may be invalidated, and the trade should be exited.
Early Warning Signals for Reversals: Perhaps their most celebrated power is their role in signaling potential reversals. Candlestick patterns like Pin Bars (Hammer, Hanging Man, Shooting Star, Inverted Hammer) are fundamentally built around a prominent wick, specifically designed to show strong rejection at a key level, hinting at a change in direction.
Leveraging the Power of Wicks:
Professional price action traders pay meticulous attention to wicks, especially when they appear at key market confluence points:
At Support/Resistance: A long lower wick forming at a strong support level (or a long upper wick at resistance) is a high-probability reversal signal.
At Trend Lines/Moving Averages: Wicks testing and rejecting these dynamic levels indicate their continued significance as areas of supply or demand.
After Significant Moves: A large wick following a sustained trend often indicates profit-taking or exhaustion, signaling a potential pause or reversal.
In Consolidation: Wicks can outline the boundaries of consolidation patterns, showing areas where price is being rejected from breaking out in either direction.
By diligently analyzing the length, position, and context of wicks, traders gain invaluable insights into the invisible battles between buyers and sellers, enabling them to anticipate future price movements and make more informed, higher-probability trading decisions.
💰Quotes:
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”
💰Normal Tone Slogans:
“Enter with a plan, then let the trade play out.”
“The work is in the setup — the result comes with patience.”
“We don’t babysit trades. We trust our edge.”
“Entry is action. Waiting is discipline.”
“After entry, emotion has no place — only patience.”
💰Wicks Slogans (Professional):
“Wicks reveal the true battle between buyers and sellers.”
“Read the wicks to read the market’s story.”
“Wicks: The market’s whispers of rejection and acceptance.”
“A long wick tells a tale the body can’t.”
“Don’t ignore the wick—it’s the market’s truth serum.”
“Wicks show where price tried to go—and failed.”
“The power is in the wick, not just the candle.”
“Wicks warn you when a reversal is brewing.”
“Wicks mark the spots where the market changed its mind.”
“Follow the wick to find real support and resistance.”
💰“Wicks: The market’s way of saying, ‘Nice try!’”
“Long wick, short patience.”
“Wicks—because price likes to test your emotions.”
“If wicks could talk, they’d spill all the tea.”
“Wicks: The candle’s dramatic flair.”
“Don’t trust a candle without a good wick story.”
“Wicks: Proof the market has commitment issues.”
“The longer the wick, the bigger the ‘Oops!’ moment.”
“Wicks are like market mood swings in candle form.”
“Wicks—making traders question their life choices since forever.”
💰🕯️ The Power of Wicks in Price Action
A wick (also called a shadow) is the thin line above or below a candlestick body. It shows where price moved temporarily but was rejected — revealing hidden strength or weakness in the market.
Wicks = rejection, traps, and clues to smart money behavior.
💰🔍 Why Wicks Are Powerful:
🔄 Rejection Signals: Long wicks show the market tried to push in one direction but failed — often a sign of reversal or hesitation.
🧠 Reveal Stop Hunts: Wicks often grab liquidity above/below key levels before reversing.
🏹 Mark Entry Zones: Wicks into key support/resistance can give precise, low-risk trade entries.
⚔️ Trap Retail Traders: Breakouts with long wicks often trap traders who entered too early.
💰🧘 📌 Example:
A candle has a long upper wick → buyers pushed price up, but sellers took control → bearish sign.
A long lower wick → sellers pushed price down, but buyers rejected it strongly → bullish sign.
💰🎯 How to Trade Using Wicks:
Identify key levels: support, resistance, trendlines, or round numbers.
Look for long wicks that pierce those levels but close back inside.
Confirm reversal or continuation with next candle patterns (e.g., pin bar, engulfing).
Enter on confirmation, with stop loss beyond the wick’s tip.
💰💡 Pro Tips:
Wicks are strongest on higher timeframes (4H, Daily).
Use wicks in confluence with trend, RSI divergence, or volume spikes.
Watch for wick rejections at Fibonacci levels, moving averages, or liquidity zones.
We Wait
💰Funny Tone Slogans:
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”
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💰
Price action is the foundation of technical trading. It refers to the movement of price over time, without relying on indicators. Here’s why it’s powerful:
🔥 The Power of Price Action:
Simplicity
Price action strips away distractions. Traders read candles, structure, and key levels directly from the chart.Real-Time Clarity
It reflects real-time decisions of buyers and sellers, showing where the market is reacting.Universal Application
Works on all timeframes and markets—forex, stocks, crypto.Identifies Key Setups
Patterns like:Pin bars
Engulfing candles
Inside bars
Break and retest
provide high-probability entries.
Institutional Footprints
Price action helps you “see” what smart money is doing—entries at key levels, liquidity grabs, false breaks, etc.No Lag
Unlike indicators, it’s immediate—based on what’s happening now, not 10 bars ago.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
💰Funny Tone Slogans:
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”
💰Funny Tone Slogans:
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”