Wick
The thin line above or below a candle body showing a price that was reached but not held.
Full explanation
A wick — also called a shadow or tail — marks the extreme of a candle: the highest or lowest price traded during that period. If the candle closes far away from that extreme, the wick shows price was pushed there and pushed straight back.
A long upper wick means buyers tried higher and sellers took control before the close. A long lower wick means the opposite. The longer the wick relative to the body, the stronger the rejection it describes.
Wicks are especially common around levels, session opens and news releases, where liquidity thins out and price briefly overshoots.
Why traders watch it
Distinguishing a wick from a close is the practical difference between a false breakout and a genuine one. A wick through a level is a failed attempt; a close beyond it is acceptance.
The Trading Plan uses this distinction constantly, because it converts a vague instruction ("wait for confirmation") into something you can see on the chart.
Trading considerations
- A wick through a level is not a break.
- Long wicks at a level suggest the level is being defended.
- Expect longer wicks in thin liquidity and immediately after news.
Educational guidance only — never a trading signal or recommendation.
Related indicators
ATR (Average True Range)
ATR, or Average True Range, measures the average distance a market travels over a chosen number of periods, including gaps. It is a pure volatility reading with no directional bias. Traders use ATR to set stop distances that respect normal noise, to size positions consistently, and to judge whether current conditions are unusually quiet or unusually fast.
Bearish candle
A candle that closes below its open — sellers finished the period in control.
Bollinger Bands
Bollinger Bands are a volatility indicator made up of a moving average with upper and lower bands that expand and contract as market volatility changes. They help traders judge whether price is becoming stretched, identify volatility changes, and support both trend-following and mean reversion analysis.
Breakout
A breakout occurs when price moves decisively beyond a defined level such as a range high, trendline or consolidation boundary. It signals that the balance between buyers and sellers has shifted and can start a sustained move. Breakouts also fail often, so traders look for confirmation through follow-through, expanding range and a successful retest of the broken level.
Bullish candle
A candle that closes above its open — buyers finished the period in control.
Candle
A single bar on a candlestick chart showing the open, high, low and close for one period.