WickCheck / Trading school / Wick
WickShadowBeginner
The thin part of a candle above or below the body, showing prices that were reached but rejected.
What it means
Long wicks into old highs or lows often mark a liquidity sweep: price ran the stops and came back. Some traders use the wick midpoint (consequent encroachment) as a level.
How to spot it
- A wick much longer than the body at a key level.
Common mistakes
- Treating every long wick as a reversal.
Related terms
Liquidity sweepPrice trades beyond a high or low, triggers the stops there, and closes back ins…Pin barA candle with a small body and one long wick, showing a sharp rejection.…Consequent encroachmentThe 50% midpoint of a fair value gap or a long wick.…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.