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7.6What are candle wicks?

1What is it?

Wicks (shadows) are the thin lines above and below the body, showing the highest and lowest prices.

2Why does it exist?

Long wicks show rejection: price went there but couldn’t stay.

3Diagram
₹91₹96₹102₹108₹113
Left: long lower wick (hammer): sellers pushed down, buyers pushed back. Middle: long upper wick (shooting star): buyers rejected. Right: doji: open ≈ close, indecision.
4Quick revision
  • Upper wick = rejection of higher prices.
  • Lower wick = rejection of lower prices.
  • Doji = indecision.
5Knowledge check
Q1. Long lower wick suggests?Show answer

Buyers rejected lower prices.

Q2. What is a doji?Show answer

A candle where open and close are almost equal.

Q3. Long upper wick at a high suggests?Show answer

Sellers rejected higher prices.

More in Level 7: Technical Analysis: Understanding Stock Charts