John Smith

10/08/2026

A lower wick is not proof buyers won.

It proves sellers pushed down and someone pushed back.

Here is the check I run on $BTC.

1. The lower wick is at least twice the body.

Measure it. A short wick is just noise.

2. The wick drops below a level that existed before this candle.

Old low, prior range floor, [VERIFY: exact level on your chart].

3. Volume is higher than the last 20 candles.

Buying that matters shows up in volume.

The mistake that costs money: buying the wick while price still makes lower highs.

One candle does not turn a downtrend.

My exit rule: if the next candle closes below the wick's low, the idea is dead.

Honest limit: the wick shows buyers appeared there.

It does not show they will stay.

How many candles do you wait after a lower wick?

10/08/2026

Please also follow us on twitter/X

Same shape. The name changes with what came before it.

Lower wick at least twice the body.
Upper wick almost nothing.

Body at the top of the range.

That is one candle. It has two names.

After a fall in price: hammer.
After a rise in price: hanging man.

Green or red body does not decide it. The trend before it does.

Why the hanging man matters:
Sellers pushed price down hard inside an uptrend.

Buyers won it back, but the dip is new information.

Where I got it wrong for a long time:
I named the candle first, then looked at the trend.

Do it the other way. Trend first, name second.

Both die the same way.

If the next candle closes below the wick's low, the idea is dead.

Honest: the hanging man is the weaker of the two. Many traders ignore it.

Check your $BTC chart trend first, then name it.