The psychology behind Long Wick patterns reflects a struggle between buyers and sellers, where one side initially dominates and pushes the price to an extreme level. However, the opposing side regains strength, bringing the price back toward the opening level, indicating indecision or rejection of the extreme price. A long upper wick shows that sellers ultimately overpowered buyers, while a long lower wick indicates that buyers overcame initial selling pressure.
What is the Long Wick Candlestick Pattern?
Definition
The long Wick is a candlestick pattern that indicates a potential reversal in an uptrend or down trend, signaling increasing selling pressure or buying pressure. This pattern signals that there was considerable price fluctuation within the trading period, but the final closing price reverted closer to the opening price.
Appearance
Characteristics
A Long Wick pattern in candlestick charts features a candle with an extended wick, or shadow, that stretches far beyond the candle’s body.
Example
The psychology behind Long Wick patterns reflects a struggle between buyers and sellers, where one side initially dominates and pushes the price to an extreme level. However, the opposing side regains strength, bringing the price back toward the opening level, indicating indecision or rejection of the extreme price. A long upper wick shows that sellers ultimately overpowered buyers, while a long lower wick indicates that buyers overcame initial selling pressure.
