3. Long Wicks
Candlesticks with long wicks occur when the prices that the market opens and closes are near, with a very high or low price reached between the open and close of the market. These candlesticks either come with very long wicks or very long tails.
Candlesticks with long wicks often occur when prices are tested and then rejected, as the long wick indicates the rejected prices.
Such long wick candlesticks usually signify a reversal in trend. However, to interpret the significance of the Long Wick candlestick, it is important in referring to the current trend, such as how a long wick candlestick at the end of a downtrend could indicate a reversal of the current bearish trend.