A long wick marks a price level that got visited and rejected. That's all. The story told around it, such as stop hunts, absorption or exhaustion, is interpretation.
Still, wicks carry useful information. A long upper wick on a candle that closes near its low means buyers pushed up and sellers overwhelmed them. If it happens at a meaningful level, such as a prior high, the rejection has weight.
Some cautions:
1. Wicks on broker feeds may not appear on other feeds, especially spike wicks in thin hours.
2. A wick during a spread blowout can be a quote artefact, not a real trade.
3. Several wicks at the same level suggest persistent pressure, while a single wick can be a one-off.
Wicks also help with stop placement. A stop placed exactly at a wick's tip invites a retest. A stop beyond a cluster of wicks gets more room.
How are wicks used: for entries, for stops, or just for chart decoration?
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What wicks are really saying
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