Wicks, Bodies and Rejection
Reading the shape of a candle rather than just its colour.
Overview
The proportions of a candle carry more information than its colour. Learning to read the relationship between body and wick is the foundation for every candlestick pattern that follows.
Reading the Body
The body measures conviction. A long body means price moved decisively in one direction and held that move into the close. A short body means the period ended close to where it opened, regardless of how far price travelled in between.
- Long body: One side controlled the period
- Short body: Indecision, or a balance between buyers and sellers
- No body: Open and close were equal, forming a doji
Reading the Wicks
A wick marks a price that was reached and then rejected. The longer the wick, the more forcefully that level was refused.
Upper Wicks
A long upper wick means price pushed higher during the period but could not hold there. Sellers met the advance and forced price back down before the close. At resistance, this suggests supply is present.
Lower Wicks
A long lower wick means price fell during the period but recovered before the close. Buyers stepped in at lower prices. At support, this suggests demand is present.
Wicks on Both Ends
Wicks at both ends with a small body show a period of genuine indecision, where both directions were attempted and neither held. In a strong trend this can mark a pause; at an extreme it can precede a reversal.
Where Rejection Matters
Rejection is only meaningful in context. A long lower wick in the middle of a range says very little. The same candle at a level that has held several times before is far more informative.
The most useful question is not "was there a wick?" but "was there a wick at a price that matters?"
Psychology Behind Rejection
A long wick represents a failed attempt. Traders committed to a direction, were unable to attract enough follow-through, and the move was unwound within the same period.
When that happens repeatedly at the same price, it indicates a concentration of orders that the market has not yet been able to absorb.
Confirmation Signals
- Rejection occurring at a previously respected level
- Higher-than-average volume on the rejection candle
- The following candle closing in the direction of the rejection
- Multiple rejections clustering at a similar price
Weaknesses & Limitations
- Long wicks are common and most of them mean nothing
- Low-liquidity conditions produce exaggerated wicks
- A rejection candle gives no indication of how far the reversal will travel
- Wick length varies with volatility, so it must be judged relative to recent candles
Example Use
A trader watching a support level that has already held twice sees a candle print a long lower wick into that level on elevated volume. Rather than entering immediately, they wait for the next candle to close higher before considering a long, using the low of the wick as invalidation.
Risk Management Notes
Rejection wicks are frequently followed by further tests of the same level. Position sizing should assume the level may break, and invalidation should sit beyond the wick rather than inside it.