I always pay attention to candestick wicks, heres why
So, I created this thread because many beginners i have interacted with seem to think candestick wicks hold zero value, and I think that notion is wrong. I will be discussing why candlestick wicks are valuable parts of technical analysis, and how I use them to have an edge on the charts.
PS: If you dont agree with me you can prove me wrong here, I am just posting what works for me but I will like to hear other views on this subject.
Some WIcks Are More Important Than Others 🦁
Okay, trader quality number 1, I think you need to have an "eye for wicks". Please look at the chart I attached, although there are several wicks on different candles, one wick stands out conspicously.
I mean if this were a fashion runway walk and you were a scout, would you be able to spot the hottest wick? Now back to the subject, I am going to explain why I took special interest in that special wick in the image.
if you take your line drawing tool and extend a horizontal line from the tip of the wick across the chart, you will notice that it went ahead to act as a support level at 1.16050.
Look at this chart, there is a wick that stands out and drawing a blue horizintal line across the tip of the wick reveals price reversed upwards at the wick level of 1.15982.
This morning I spotted another wick at price level 1.16546 which is acting as support preventing price from dropping below it.
I spotted another wick at 1.1658 and if you follow the trace of the blue arrow line, you will notice a bullish engulfing pattern formed at the 1.1658 level resulting in an upward rally
