So, new here etc., but there’s something cool and not entirely accurate that I noticed. The length of the wick or shadow of each candle stick can be thought of as ‘pushing’ the candle in one direction, sorta like you’re tugging at the wick to make it longer while simultaneously pushing out the body of the candle. So, if lower shadow is long, that means more selling prices have been rejected. Meaning, in the ‘tug of war’ or struggle between buyers and sellers, bulls and bear, the bulls are winning. meaning the next candle is going “up”.
For bears, upper shadow is longer, meaning the candle is being pushed ‘down’ as high prices get rejected.
Total noob here, lmk if you think this is sensible…
Not a bad summary. If the open and the close are right at the top of a tall candle with a long long wick below, that’s a bullish indication for price behaviour in the next time period.
The converse also applies. Suppose price makes a bullish candle like that example, with open and close right near the top. But then the next candle drops through the low of the bullish candle and closes below its low. That would be very bearish.
But don’t depend on one candle to give you a strategy, they are not reliable enough for that.
Your interpretation of candle wicks is absolutely classical and you can find it in literature
Using this look at candles I’ve written indicator which reflected average balance between upper/lower wicks to measure how “sure” market is of direction. If candle has both wicks long we say it is “indecision candle” so the contrary is also true - if wicks and bodies are dominantly in one side or another, market (at least shortterm) decided on direction.
