Direct answer
A worked example of wicks shows, step by step, how you would measure the upper and lower wick lengths of a candlestick and what assumptions you use to do the math. In this article, the example is fully hypothetical: we assume specific candle prices so the calculations are checkable, and we explain what can and cannot be concluded from wick sizes.
Mechanics: what “wick” means before implications
A candlestick typically has:
- Body: the rectangle between the open and close prices.
- Upper wick (shadow): the part from the high down to the top of the body.
- Lower wick (shadow): the part from the low up to the bottom of the body.
Wick size can be measured in two common ways:
- Price distance (absolute): e.g., high − body top.
- Relative distance (percentage of range): e.g., wick length divided by (high − low).
To interpret wicks, people often use a non-certain idea: longer wicks can indicate that price moved away from a level within that candle. However, the wick itself does not reveal the exact cause (orders, liquidity, volatility, or chart artifacts). So the correct goal of a worked example is measurement and transparent assumptions, not certainty.
Worked example (hypothetical and fully specified)
Assumptions
We assume one candle with these prices:
- Open = 1.2000
- Close = 1.1960
- High = 1.2030
- Low = 1.1940
We also assume a standard candlestick definition where:
- Candle range = High − Low
- Upper wick length = High − max(Open, Close)
- Lower wick length = min(Open, Close) − Low
These are stable mechanics; what changes in real life are the inputs (actual prices) and the charting/provider details.
Step 1: identify body boundaries
Because Close (1.1960) is below Open (1.2000), the candle body runs from:
- Top of body = Open = 1.2000
- Bottom of body = Close = 1.1960
Step 2: compute wick lengths (price distance)
- Range = 1.2030 − 1.1940 = 0.0090
- Upper wick = 1.2030 − 1.2000 = 0.0030
- Lower wick = 1.1960 − 1.1940 = 0.0020
So in this candle, the upper wick is longer than the lower wick.
Step 3: compute wick sizes (relative to candle range)
- Upper wick % = 0.0030 / 0.0090 = 33.33%
- Lower wick % = 0.0020 / 0.0090 = 22.22%
What this “measurement” could suggest (without claiming certainty)
A longer upper wick means price reached 1.2030 but ended with the close below 1.2000. With no extra data, the only safe, checkable interpretation is:
- Within that candle interval, the high was not sustained into the close.
- The asymmetry (upper wick > lower wick) means the rejection/move away looked stronger on the upside than the downside.
But you cannot determine why from the candle alone. The same wick shape can occur under different market microstructure conditions.
Limitations and risks (what can go wrong)
- Charting and data differences: Wick lengths depend on how OHLC values are built for the chosen timeframe and data source. Different feeds or aggregation methods can change measured highs/lows.
- Ambiguity: A wick only shows that extremes occurred within the candle interval; it does not prove order intent, liquidity location, or a specific “level.”
- Context matters: Wick interpretation is usually more reliable when combined with broader context (trend, volatility regime, nearby prior highs/lows). A single candle cannot establish that context.
- Execution reality: In real trading, spread and slippage can affect where fills occur relative to displayed wick extremes, so wick measurements may not match trade fill behavior.
- Failure mode: overfitting: If you treat wick length as a standalone rule, you may get many false inferences—especially during news-driven volatility where long wicks are common.
Verification and next question
To independently verify the worked example, redo the calculations using the stated inputs (open, close, high, low) and the definitions given for body top/bottom and wick lengths. Then compare how the wick ratios change if you alter only one number (for example, increase the high while keeping open/close fixed).
If you want a more complete understanding, the next question to answer is: How do wick measurements change across different timeframes for the same underlying price movement? That comparison highlights how dependent wick shape is on candle construction.