Candlestick Wick Imbalance as a Trading Signal

Summary

This short indicator description compares the upper and lower shadows of each candlestick and marks a candle when one shadow is sufficiently larger than the other. The user sets a multiplier threshold; for example, a threshold of two marks a candle when either wick is at least twice the length of the opposing wick. The plotted symbol appears on the side whose wick is larger, making the relative imbalance visible on the chart.

The description provides a visual rule for identifying asymmetric candle ranges, which traders might use to flag rejection or imbalance for further analysis. It does not define how wick signals should trigger entries or exits, nor does it specify the instrument, timeframe, or treatment of candles with a zero-length wick. No backtest, performance results, or risk controls are included, so the indicator alone does not establish that the pattern predicts subsequent price moves.

Key ideas

• The indicator compares the lengths of a candle's upper and lower wicks.
• A user-defined multiplier sets how large one wick must be relative to the other to trigger a mark.
• The chart symbol is plotted on the side with the longer wick.
• The description supplies no entry rules or evidence that the imbalance predicts future returns.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.