Why You Don't use Wicks #technicalanalysis #shorts

24 Apr 2023 · 1 min

Watch on YouTube

0:34

In this short tutorial, the speaker explains a recurring market pattern: after an expansion phase, price typically retraces, creating a fair value gap that remains unfilled. He highlights that the candle bodies, not the wicks, usually occupy this gap because they reflect where institutional volume is concentrated. Consequently, he advises traders to wait for candle bodies to close when entering retracement trades, warning that wicks are easily manipulated and should be relied upon minimally.

Chapters

I wanna point this out to you because this happens all the time in the market. After every expansion, you always retrace. Remember that analogy about the fish? Once you eat the food up top, there is always food to be eaten down below. In this case, it comes in the form of a fair value gap. So this is a fair value gap that hasn't been filled. Notice how the candle bodies are mostly within the fair value gap. That's why I told you, if you are going to take the trade that I suggested down low on the retracement, you always wait for the candle body to close, right? Look at where the candle bodies are because that is where most of the institutional volume is concentrated. Wicks are easily manipulated, and that's why you don't want to use them as much as possible.