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The Wick Phenomenon: How and Why Big Wicks Get FilledIn trading, wicks on candlestick charts represent the highest and lowest prices during a given time period. Long wicks can often be seen as a sign of market indecision, but they also tend to get filled by subsequent price action. This phenomenon occurs frequently and can provide valuable insights for traders looking to capitalize on price movements. In this article, we’ll explore how and why big wicks get filled through practical examples. Understanding Wicks and Their Significance Wicks, also known as shadows, appear on candlestick charts when the price moves significantly above or below the opening and closing prices within a specific time frame. A long upper wick indicates that prices were pushed up but then fell back down before the close, showing selling pressure. Conversely, a long lower wick suggests that prices were driven down but then recovered before the close, indicating buying pressure. Usually, at least 50% of the wick will be filled, and sometimes the entire wick will get filled before the reversal happens. Why Do Wicks Get Filled? 1️⃣Market Psychology: Traders often see long wicks as areas of interest. For instance, if the price reaches a high but then falls, traders might anticipate a retest of that high. 2️⃣Liquidity Zones: Long wicks indicate areas where a lot of trading activity took place. These areas are often revisited as the market seeks liquidity. 3️⃣Mean Reversion: Prices tend to revert to their mean over time. A wick can be seen as a deviation from the mean, and the subsequent filling of the wick is part of the reversion process. How To Trade It? It all depends on your trading plan. Here are some options: Aggressive traders can buy/sell immediately after the wick has been formed. Semi-conservative traders can look for a reversal pattern on a lower timeframe to confirm it. Extra conservative traders can wait for the candle with the wick to be broken from the other side before entering. Additionally, considering more confluences like key levels, market structure, and the overall trend will give you a better edge. Why Now? You might be wondering why I am posting this article now. As you may have noticed, we had a dip yesterday, giving us a practical example on many altcoins and stocks. For this example, I have chosen DOGE, 4H chart. I hope you like the content and found it useful. Are you taking wicks into consideration in your trading plan? If yes, how? If not, why? What would you like me to discuss next? Always remember: 📚 All Strategies Are Good; If Managed Properly! ~Richard Nasr
by TheSignalyst
28
Long Shadow TokenTraders, Until BTC gives us something more definitive, I'll be cautious on the long side. Conviction from the market may not occur until after the having, but, as always, we'll be watching the charts for a head start. That being said, there are a few altcoins that I believe are especially attractive right now. One such token is SHDW, a L2 Solana-based token. Recently, Coinbase announce this token listing on the roadmap. This gave SHDW a boost from 1.40 all the way up to 2.90. I am also a long-term hodl'er on this little gem and sold some of my hodl'ings up around 2.60 or so for I beautiful gain. I have since re-entered and along with that re-entry, think it's worth adding to our trade portfolio. Soon (though the date is unknown) it will be listed on Coinbase as well as other major exchanges. And when that happens ...moonshot. TBH, my target of 2.90 is probably rather conservative because once this thing is listed, it will fly. However, true to good trading practices, I will be taking at least some profits at that double-top 2.90 area. I will probably then let the remainder ride, trailing my stops as we go. To purchase this token, I have connected my wallet on the Jupiter exchange (jup.io). There are a number of wallets that can be utilized but both Metamask and Phantom are also accepted. Entry - 1.83 Targets - 2.00 and 2.90 SL - 1.29 RRR - 2 Best, Stew
Long
by stewdamus
Long Shadow Token Another little gem on the Solana network is Shadow. While all the Layer 2 coins have had their chance to pump, Shadow has really waited patiently behind the scenes. Not many people know about it because it's not listed on any of the CEX's. I used Jupiter (a Solana Dex) to get mine. Anyway, I think SHDW could pump soon. I am setting my target to around 2.40, taking profits along the way at the various levels I have drawn. My stop out will be just under that blue ascending TL. This gives me an RRR of around 3/1. Best, Stew
Long
by stewdamus
TSLA: Will the bull trend prevail? Let's see.Hello traders and investors! Ok, Tesla did a fantastic movement today! Let’s see what’s going on with it. First, the hourly chart suggests that Tesla just did a retest of one of its supports (red line around $ 408) and the price bounced up again above the purple trendline and above the 21 ema, and only if Tesla loses these two points the bull trend will get weaker. Also, as long it continues to trade between these two red lines, nothing new will happen to Tesla, as they are the most important Pivot Points for the stock right now. Now, let’s look at the daily chart: It is interesting to note that the retest of the lower red line coincides with a pullback to the 21 ema in the daily chart, reinforcing our view that this is an important support for TSLA. The stock is still in a bull trend, and I see no clear reversal signs at it . Only if Tesla loses the 21 ema again and triggers the pivot point at $ 408 we’ll see a reversal sign. Until then, it seems the stock is just doing a correction. If it defeats the upper red line ($461) the next target is the All Time High again. Let’s see how TSLA will behave next, and if you liked this analysis, please, support it ! And follow me to keep in touch with my daily analyses! I’m sure you’ll find something you like around here. Either way, today's candlestick is quite powerful. It is leaving a huge shadow under the candle's body, and this means a lot to me. I always tell you, shadows are like scars on the chart . The bears dominated for a while, but the bulls pushed them away, far from its support level - a reminder that there are buyers at that zone . Each candlestick tells us a story, and I'm looking forward to seeing the outcome of today's battle. Stay safe.
NASDAQ:TSLA
by Nathan_The_Finance_Hydra
21
Is ShadowCash Preparing for Another All Time High?ShadowCash appears to be sitting on a critical support, and with strong investor demand for privacy-centered coins like XMR and DASH, SDCBTC could be preparing to follow suit with a large advance over the next few months if this support continues to hold. If this support fails then it will be a good idea to steer clear of this crypto for awhile. Fundamentally, this could come down to the development announcement planned on March 17th by 10:00 UTC. This is most likely going to be the release of the public beta for Shadow Market, which is a decentralized, on-chain, anonymous market that uses ShadowCash for currency. The private alpha was released back in November, so this is the next logical step, but it could honestly be anything, we'll have to wait and see what they say. imgur.com If this support fails and the news is negative then definitely stay away from this coin, there is really no where you can short it, but on the upside it could increase a few hundred percent on the first run. So its a good r/r buy right now, and crypto in general has been very bullish this year, and the bull run on bitcoin is likely to continue and attract more new money into the crypto-sphere who will be looking for ways to diversify their blockchain investments, which means not only shadow but many other altcoins could likely see large advances in USD value, some that are greater than BTC's advance, like we've already been seeing with ETH, DASH, XMR, et al. Also if the news of a public beta does come out, that could attract a lot of new money into ShadowCash because many anonymous vendors will create their own Shadow Market stores and that will create an active economy on top of Shadow's blockchain that is using ShadowCash exclusively for transactions. It's also possible that this technology could be disruptive towards the current anonymous market structure by removing the cost of centralized markets stealing participants funds and taking large fees. The dark net market industry is massive and growing rapidly, and recent estimates put them over 21m USD a month in transaction volume . Being that this coin can also be used to hide funds much more cheaply than bitcoin tumbling it could also be used as a way to hide illicit funds which is a huge industry as well that goes along with anonymous markets. Fundamentally, this coin has everything going for it, if the Devs can deliver. If this support holds, there are quite a few resistances we'd have to break through before we break All time high, most likely we'll get some minor retracements at each resistance and then continue up after a short dip, so its a good idea to watch when it nears each resistance and possibly take some profit and look for a lower entry. If all the resistances fail and we break all time high then it will be a good idea to buy even more (or increase leverage if exchanges decide to add leverage) because there will likely be a lot of hype and this coin will continue to increase massively against BTC .
SLong
by Intuit
10