Candle Wicks

A candle wick or a shadow or a tail, is a line situated above and below the body of the candlesticks. They may be long, short or missing. Longer shadows and short body exhibit the indecisive nature of the mass traders psychology. Where as short shadows and longer body means decisive movement.

Candlesticks with long upper shadows commonly occur when an up trend is loosing the strength and long lower shadows occur when the down trend is loosing its steam.

Long tails with a small body constitutes Spinning tops. They measure the confusion in the minds of the mass traders.

When the body is missing, which happens when both opening and closing are at the same price, a doji line is formed. They may be short legged dojis or long legged dojis with short wicks and long wicks. In a doji if the upper shadow is absent we get Dragonfly doji. If the lower wick is absent we get Gravestone doji. Dojis are a sign indecisiveness and may mark a beginning of explosive movements.

Candle lines with long lower wick and no or very short upper wick forms Hammer and Hanging man patterns. Where as Shooting Star is formed, when there is a long upper wick with no or very short lower wick.

A candlestick with no wicks are called Marubozu. When opening & low and closing & high are at the same price, we get Bullish Marubozu. When opening & high and closing & low are at the same price, they are called Bearish Marubozu.

Study the different patterns and understand their significance.