Wicks are an important part of candle structure. They show the highest and lowest prices reached within the interval and often reveal hidden behavior. A wick scanner tool automatically highlights candles where the wick is abnormally large compared to the body. This allows traders to spot liquidity hunts, failed breakouts, and rejection moves quickly. In this article you will learn why wick scanners are valuable and how to use them effectively.
What candle wicks reveal
A wick represents price exploration. Buyers or sellers pushed price beyond the close but could not sustain it. Long upper wicks often show failed breakouts or rejection. Long lower wicks can signal absorption of selling pressure. Understanding wick behavior is key to interpreting intraday dynamics.
Why scanners are needed
Watching charts manually for wick anomalies is slow. With dozens of pairs and intervals you will miss many. A scanner automates detection. It checks wick to body ratios and flags abnormal candles in real time. This reduces monitoring load and helps you focus on analysis rather than searching.
Common thresholds for wick detection
- Wick to body ratio 1.5+: Often signals abnormal rejection.
- Wick length > 2 percent of price: Large extension relative to recent moves.
- Both upper and lower wicks large: Often seen in volatility traps.
Liquidity hunts and stop runs
One of the most common wick patterns is the stop hunt. Price spikes beyond a known level, triggers stops, then reverses. Scanners flag these instantly so you can confirm context and avoid chasing fake breakouts. Identifying liquidity hunts protects you from entering where risk is highest.
Integrating with delta and volume
A wick alone does not confirm intent. Pairing wick anomalies with delta percent and volume multipliers gives stronger signals. For example a long upper wick with high volume but no follow through often confirms rejection. A scanner that tracks all three signals is more effective than wick alone.
Example workflow with Elxes
- Set scanner to flag wick to body ratio greater than 1.5 on 1m, 3m, and 5m intervals.
- When a wick alert fires, open the chart and mark the level it pierced.
- Check whether the move aligns with liquidity pools or prior highs and lows.
- Validate with volume anomaly. High volume with reversal wick often signals exhaustion.
- Decide if it fits your plan: fade the move, wait for retest, or stay flat.
Common mistakes to avoid
- Overreacting to every wick: Not all long wicks matter. Context decides importance.
- Ignoring higher intervals: A wick on 1m may vanish in a 5m body. Always confirm.
- No threshold tuning: One fixed ratio may be noisy. Adjust based on volatility regime.
Conclusion
Wick scanner tools simplify the process of finding meaningful candle wicks. By combining wick detection with delta and volume you can filter noise and focus on real signals. Elxes integrates wick scanning into its core features so traders do not need to watch every chart. Learn to use wick anomalies wisely and you will gain faster insight into liquidity dynamics and rejection events.