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A wick (also called a shadow) is the thin line extending above or below the body of a candlestick, showing the highest and lowest prices reached during that period. A long upper wick indicates that buyers pushed the price up but sellers rejected it. A long lower wick indicates that sellers pushed the price down but buyers rejected it. Wick length and position are key signals in price action trading.
A daily candle on XAUUSD has a small body at $3,040 but a long lower wick reaching down to $3,010. This $30 wick shows strong buying rejection at lower prices — sellers tried to push gold down but buyers stepped in. This is a bullish signal, especially near a support level. Prices in this example are illustrative.
