Wick Fill Trading Strategy - How to Apply | Motilal Oswal

Wick Fill Trading Strategy - How to Apply


  • Traders in the financial markets aim to use effective strategies to maximize profits while minimizing risks.
  • One such popular strategy is the 'wick-fill trading' strategy. 
  • It analyzes candlestick charts to identify potential reversal patterns.
  • This strategy capitalizes on the 'wicks' or 'shadows' of candlesticks to predict price movements accurately.

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What is the Wick Fill Trading Strategy?

  • A wick fill trading strategy involves applying candlestick charts to find a wick fill pattern.
  • It refers to a situation where the value of an asset rises or dips over a trading session, yet doesn't close above or below a key level.
  • This creates a wick on the candlestick chart, which shows the difference between the session's highest and lowest values and the closing price.
  • It aims to detect possible market reversal opportunities by closely examining how candlesticks develop and interact with key support and resistance levels.

What are the Benefits of the Wick Fill Trading Strategy?

Some key benefits are:

  • This strategy allows traders to initiate trades at minimal risk.
  • Traders wait for the wick to fill before initiating a trade. This makes them trade only when the stock market has already demonstrated some support or resistance at a key level.
  • Traders can use the wick fill strategy with other trading systems as well.
  • Traders can apply the wick fill strategy to identify key levels of support or resistance.
  • They can then use additional technical indicators to verify the trend and identify points of entry and exit to execute their trades.

How Do I Apply the Wick Fill Trading Strategy?

The steps are given below:

  • Identify support and resistance levels: Before you apply the wick fill strategy, it's important to identify the significant support and resistance levels on the price chart. These levels are essential, as they provide a context for interpreting the wicks.
  • Identify a bullish or bearish wick-fill candle: A bullish long-wick candle indicates the ending of a downtrend, while a bearish long-wick candle indicates the ending of an uptrend. Accordingly, traders can decide to buy or sell.
  • Combine with other indicators: While this strategy can be powerful, it's often more effective when combined with other technical indicators or chart patterns. Hence, traders can take advantage of trend lines or other tools.
  • Risk management: Traders should set appropriate stop-loss levels to protect against significant adverse price movements.


  • The wick-fill trading strategy is valuable for identifying potential reversal points in the financial markets.
  • By focusing on the wicks of candlesticks and understanding their interaction with support and resistance levels, traders can gain valuable insights into market sentiment and price dynamics.


Related Articles: How Does MACD Work as a Momentum Oscillator for Forecasting Market Trends | What is Evening Star Candlestick Pattern | Difference Between Margin Trading And Short Selling | All About Intraday Breakout Strategy


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