The line of the candlestick chart indicating the price fluctuation of the asset with respect to its opening and closing prices is called a wick. It’s that vertical line that helps a trader observe the high and low ranges of price action. These wicks are also referred to as shadows or whiskers. Three key factors are kept in mind by the traders while reading a candlestick. It’s the opening price, closing price, and the wicks of the candlesticks. The peaks in prices are denoted by the wicks of the candlesticks, helping the traders to better analyze the market sentiment. Wicks are the visual record of the price movement of the coin’s price.
The box portion of a candlestick is called the body, and the fine lines on both the ends are the wicks. These lines or wicks form an important part of the candlestick since they are representative of extreme price levels in a particular trading season. The length of the wick plays an important role during technical analysis. A long wick on the top of the candle denotes that the price went all the way up there, and then came down. This indicates an increase in selling immediately after a period of buying pressure.