advanced · TRADING LEARNING GUIDE
Rejection wicks
What is this concept?
A long wick records excursion away from the body and a close away from an extreme. Rejection is an interpretation; future direction remains uncertain.
Step by step
Measure upper and lower wicks from body endpoints. Compare wick/body ratios and location. Define confirmation without using future information early.
From observation to decision
Record the instrument, venue, session and timeframe. Classify the observation using the definition, then write at least one alternative interpretation. Decide what evidence would invalidate your idea before entry. Mark missing information explicitly. Examples are hypothetical. Collect paper observations, including failures. Include fees, spread, slippage and timestamp alignment when measuring outcomes. Recognizing a chart shape and establishing a profitable trading rule are separate tasks.
Worked example
O105 H106 L98 C104 gives body 1 and lower wick 6. The candle traveled below its body but closed at 104; that alone does not establish a buy edge.
Common mistakes and limits
Avoid reading every long wick as reversal, ignoring context or unstable ratios when body approaches zero.
Practice
Compare long wicks at a zone and in the middle of a range. Record later outcomes without discarding failures.
Resources and further reading
These sources explain definitions and underlying mechanics. Worked examples are original illustrations; a source does not establish the profitability of a custom pattern.
Further reading / foundational context. Worked examples on this page are original illustrations, not source performance claims.