#TradingSignals Long wick candlestick patterns are formations where the wick (the line extending from the body of the candle) is significantly longer than the body. These patterns can indicate:
1. Rejection: A long upper wick can indicate rejection of higher prices, while a long lower wick can indicate rejection of lower prices.
2. Indecision: Long wicks can signify market indecision, as prices move significantly in one direction but close near the opening price.
3. Potential reversal: Long wick patterns can precede a trend reversal, especially when combined with other technical indicators.
Common long wick candlestick patterns include:
1. Hammer: Long lower wick, indicating potential bullish reversal.
2. Shooting Star: Long upper wick, indicating potential bearish reversal.
3. Pin bar: A specific type of long wick pattern used in technical analysis.
These patterns provide valuable insights into market sentiment and potential price movements.$WCT