A specialized indicator that identifies significant candle wicks within VWAP bands, highlighting potential liquidity targets and price movement trajectories.
Explore complementary indicator rolesHow it works
The indicator scans price charts to identify candles with long wicks and tiny bodies, focusing on those within VWAP bands. It uses an average candle size multiplier and a wick ratio threshold to determine the significance of each wick, filtering out extreme price points.
By analyzing the proportion of the wick to the entire candle, the script marks bullish wicks in blue and bearish wicks in red. These marked wicks serve as potential liquidity targets, indicating areas where price is likely to move in the future.
Why it may be useful
Wick analysis provides crucial insights into market sentiment and potential price direction by revealing rejection levels and liquidity zones. Traders can gain a deeper understanding of market dynamics by examining these often-overlooked candle formations, which can indicate potential trend reversals or continuation.
The incorporation of VWAP bands adds an additional layer of filtering, ensuring that only the most actionable wicks are highlighted. This approach helps traders focus on high-probability setups and avoid getting distracted by less significant or extreme price movements.
When to explore it
This indicator is most effective in markets with clear price action and distinct candle formations, such as forex, futures, and liquid stock markets. It works best on timeframes that provide clear and meaningful candle structures, particularly in intraday and short-term trading scenarios.
Traders should use this tool when looking to identify potential liquidity targets, confirm market sentiment, and spot areas of price rejection. It is particularly useful for scalpers and day traders who need quick, actionable insights into potential price movements.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
