AGAIG: ARM WRESTLING
HEIKEN ASHI CANDLE WICKS
Candle Wicks can be indicators showing potential change in direction?
HEIKEN ASHI CANDLE WICKS
Candle Wicks can be indicators showing potential change in direction?
When I see long wicks protruding above 2-3 GREEN candles in a row these may represent (Buyers) Bulls testing a higher price with (Sellers) Bears resisting the higher price? I call this “arm-wrestling” between Bulls and Bears (Buyers and Sellers) and may represent an impending change-in-direction (depending on who wins)?
Conversely if I see 2-3 RED candles in a row with long wicks protruding down frequently represents Sellers (Bears) trying to reduce price, with Buyers (Bulls) resisting the lower price. Again, a little “arm-wrestling” taking place and may represent an impending change-in-direction?
Some thoughts about Wicks:
Wicks represent the highest and/or lowest price during the candles’ time frame being used.
A long upper wick suggests price rejection by Bears (Sellers) whereas a long lower wick shows rejection by Buyers (Bulls). The end of a wick does not represent the closing price.
A short candle body with long wicks on both ends shows indecision with neither side winning the wrestling match?
Wicks and candle bodies represent price action during the current candles’ time period.
NOTE: Don’t trade wicks by themselves. The best trades have multiple indicators in agreement.
Just some food for thought. Happy Trading!
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