Wick
A wick is the thin line above or below a candlestick's body. The tip of the upper wick shows the highest price of the period, and the tip of the lower wick shows the lowest price.
Where wicks come from
A candle's body covers only the range between the opening and closing price. But during the period, price usually travels further than that. The wicks, also called shadows or tails, record those excursions: how high price reached and how low it dipped before the period ended.
If the open or close was also the high or low, that side of the candle has no wick at all.
What wicks can tell you
A long upper wick means price was pushed up but could not hold there; sellers brought it back down before the close. A long lower wick means a drop was bought back up. Traders often describe this as rejection of a price level.
Long wicks on both sides with a small body show a tug of war that neither side won in that period.
An example
Say a coin trades around 2,000 and many traders have stop losses and liquidation levels just below 1,950. A burst of selling pushes price to 1,900 for a few minutes, triggering those orders, and then buyers step in and the hourly candle closes at 1,990. The result is a candle with a long lower wick down to 1,900. On crypto markets with leverage, such fast stop runs are common.
Pitfalls when reading wicks
Wicks can differ between exchanges. A thin market on one platform may print a deep wick that never happened elsewhere, which is why some traders compare charts from several venues or use index prices.
A long wick is also not a guaranteed reversal signal. It describes what already happened within the period. Whether it matters depends on where it appears, what the volume was, and what the next candles do. Placing stops just beyond obvious wicks is a well-known habit, so those levels are often tested again.
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Frequently asked questions
What is the difference between a wick and a shadow?
There is none; wick, shadow and tail are different names for the same thin line above or below the candle body.
Why do crypto charts have so many long wicks?
Crypto markets trade around the clock, often with thin order books and heavy leverage. Sudden liquidations and stop triggers can push price briefly far from where it settles.
Does a long lower wick mean price will go up?
Not necessarily. It shows that buyers absorbed a drop during that period. Whether price rises next depends on wider context and subsequent candles.
Related terms
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