Classifying Candlesticks by Relative Wick Length

Summary

This short note defines a candlestick indicator that classifies candles by comparing the upper and lower wick lengths rather than relying on the open and close relationship. Equal wick lengths produce a neutral-colored candle; a longer upper wick marks a bearish candle, while a longer lower wick marks a bullish candle. The display colors can be changed in the indicator settings.

The note provides only a visual classification rule. It does not explain how wick lengths are measured, specify thresholds for unequal wicks, or provide examples, market context, or evidence that the classifications predict price movements. Traders would need to determine how to calculate and interpret the measure in their own charting setup before using it as part of a strategy.

Key ideas

• The indicator classifies candles by comparing upper and lower wick lengths.\nEqual upper and lower wicks are displayed as neutral.\nA longer upper wick is labeled bearish, and a longer lower wick is labeled bullish.\nThe note provides no trading rules or evidence of predictive value.

Tags

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