A dynamic wick trend analysis tool that visualizes market sentiment by comparing upper and lower price wick trends through color-coded trend lines and filling.
Explore complementary indicator rolesHow it works
The wick trend signal calculates Simple Moving Averages (SMAs) of upper and lower price wick lengths over a specified trend period. It generates trend lines that represent the average behavior of price wicks, with green lines indicating upper wick dominance and red lines showing lower wick dominance.
The indicator dynamically fills the area between these trend lines, changing colors based on which wick trend is more prominent. This visual representation allows traders to quickly interpret market sentiment and potential price rejection patterns at different levels.
Why it may be useful
By analyzing price wick trends, traders can gain insights into market psychology and potential trend reversals. The color-coded visualization provides an intuitive way to understand where price is being rejected and which market participants are currently more active - bulls or bears.
The signal helps traders assess market volatility, sentiment shifts, and potential turning points by tracking the relative strength and behavior of price wicks. This can be particularly useful for identifying underlying market dynamics that might not be immediately apparent from price action alone.
When to explore it
This wick trend signal works best in markets with clear price action and distinct candle formations, such as forex, stocks, and cryptocurrencies. It is most effective on timeframes that provide sufficient candle detail, typically ranging from 1-minute to daily charts.
Traders should use this indicator in conjunction with other technical analysis tools to confirm signals and validate potential trade entries or exits. It is particularly useful during periods of market uncertainty or when looking to understand subtle shifts in market sentiment.
Keep exploring
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.
