Price Rejection Wicks

Price rejection wicks are long tails on a candlestick chart that indicate the price reached a certain level but was quickly pushed back. These wicks show that there was strong opposition to the price move at that level, suggesting a potential turning point.

In the context of technical analysis, they are a powerful signal of market sentiment and the strength of support or resistance. A long wick at a support level indicates buying pressure, while a long wick at a resistance level indicates selling pressure.

Traders use these wicks to confirm the validity of a technical pattern or to time their entries and exits. They are a clear visual representation of the battle between buyers and sellers.

Understanding price rejection wicks is essential for interpreting market action and making informed trading decisions. It is a fundamental skill for any technical analyst.