A Japanese candlestick wick is a graphical representation of price action during a fixed time period — the portion of the candle extending beyond the body, showing where price tested but failed to close.
Types of Candlestick Wicks
A candlestick wick has two parts: the upper wick and the lower wick. The highest point of the candle — including both body and wick — is called High, representing the highest price reached for the asset during that candle’s formation. The lowest point is called Low, representing the lowest price reached in that period. For a bullish candle, the distance between the High and the closing price equals the upper wick. The distance in pips between the Low and the opening price equals the lower wick. For a bearish candle, these relationships are reversed.
If one wick dominates the other, it signals rejection of price movement in that direction — i.e., failed momentum. Equal-length wicks often indicate market indecision or consolidation.
FAQ
What does a long upper wick mean?
A long upper wick indicates sellers rejected a rally — price rose but closed significantly lower, signaling potential bearish reversal.
What does a long lower wick mean?
A long lower wick shows buyers stepped in after a drop — price fell but closed much higher, suggesting bullish rejection and possible reversal up.
Can a candle have no wicks?
Yes — a candle with no wicks (a ‘marubozu’) means price opened at either the session’s high or low and closed at the opposite extreme, reflecting strong directional conviction.
