Lengthy Wicks Can Present Worthwhile Buying and selling IndicatorsLengthy wick candles are recurrent throughout the foreign excha
Lengthy Wicks Can Present Worthwhile Buying and selling Indicators
Lengthy wick candles are recurrent throughout the foreign exchange market. This makes understanding the that means behind these candles invaluable to any dealer to grasp the market dynamics throughout a selected interval.
Buying and selling candle wicks is usually ignored as a consequence of its simplicity however appreciating this idea generally is a welcome addition to a dealer’s repertoire. This text will define:
- What are lengthy wick candles?
- The best way to determine an extended wick candle on foreign exchange charts
- What does an extended wick inform us in foreign exchange?
What are lengthy wick candles?
Lengthy wick candles are sort of candlestick which have an extended wick hooked up to the candle physique. The candle physique will be constructive or unfavorable, making the lengthy wick applicable for any sort of candlestick.
The size of the candle wick specifies the excessive and low of worth motion inside a chosen time interval. Understanding and buying and selling candlestick wicks can present forex merchants with key tradeable alternatives.
The best way to determine an extended wick candle on foreign exchange charts
- Find lengthy wicks above/under a candle that’s disproportionately longer than that of the encircling wicks.
- Use price action to determine key worth ranges that will coincide with the lengthy wick, signalling ranges of support/resistance.
- Use the lengthy wicks and key ranges to detect potential commerce alternatives.
