Module 4: Reading Candles · Lesson 24/40
6 min 35 XP
A wick is a *failed expedition*. Price traveled there, and got thrown back before the close. A long lower wick means sellers drove price down and buyers absorbed everything and pushed back: a fight buyers won. A long upper wick is the mirror image. Where these rejections happen matters more than the shape itself.
Hammer 🔨 (at a low)
Shooting star ☄️ (at a high)
Dojis, candles whose open and close are nearly equal, mean the auction ended in a draw. After a long trend, a draw *is* news: the side that was winning could not win anymore. The dragonfly (long lower wick) leans bullish, the gravestone (long upper wick) leans bearish, and all of them demand the next candle's confirmation before you act.
Location, location, location
The same shape changes name and meaning with its address: a hammer at the bottom of a decline is a bullish hint; the identical shape at the top of a rally is a *hanging man*, a bearish warning. Candle reading without location reading is fortune-telling.