Candlestick wick

As explained in Investing for Programmers

A candlestick wick is the line extending from a candle’s body to the highest or lowest price reached during the interval.

A candlestick wick, or shadow, extends from the candle’s body to the highest or lowest price reached during the trading period. The upper wick reaches the high; the lower wick reaches the low. section 10.2.1

Wicks preserve intraperiod price movement that the opening and closing prices alone omit. Long wicks can indicate rejection of price levels, while body size helps distinguish momentum from indecision. section 10.2.1 section 10.4

Reading one trading day

A share opening near $138 can rally to $140, fall slightly above $134, and close just below $136. The candle’s wicks record the intraday high and low around its body. section 10.2.1

Figure 10.19 The anatomy of a bullish (white) and bearish (black) candlestick

Use the candlestick anatomy diagram to compare upper and lower wicks with bullish and bearish candle bodies. section 10.2.1

How Investing for Programmers covers it

How deep it goes

Defines upper and lower wick anatomy and links long wicks to rejection, without developing quantitative pattern rules.

Examples

Uses NVIDIA price movement, an anatomy diagram, and Python candlestick charts as concrete examples.

What you can do after

Evaluate/understand intraday highs, lows, rejection, and volatility from candlestick charts.

How it connects

Connects candlestick wicks with candlestick bodies, opening price, closing price, support, and candlestick patterns.

liveBookmanning.com

Read Investing for Programmers on liveBook Get the book at manning.com

Related concepts

• candlestick chartpart of · A candlestick chart is a financial price chart in which each candlestick represents an interval’s opening, high, low, and closing prices.

This explainer was generated by Manning's knowledge graph from the text of Investing for Programmers. The section links point to the parts of the book it draws on.