8/2/2019 Exhaustion vs Rejection Wicks | A Teen Trader

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Wick Rejections vs Wick Exhaustion

 ateentrader(https://ateentrader.com/author/ateentrader/)  December 28, 2018(https://ateentrader.com/2018/12/28/)

 12:00 pm  5 Comments(https://ateentrader.com/wick-rejections-vs-wick-exhaustion/#comments)

@aTeenTrader
-46% -61% -40% -36% -48% -46%
(https://www.instagram.com/ateentrader/)
Left Hand Left Hand Fabric Left Hand Fabric Right
Side L S… Side L S… Sofa Cu… Side L S… Sofa Cu… Hand Si…

A Teen Trader is an educational Site Only, The contents included in this website is not
investment advice and are not meant to be taken as investment advice. Risk what you can
a ord to lose.

Overview: Today we will be talking about a critical point to understand when trading
candle sticks. What is the di erence between wick rejections and wick exhaustion?

The, or one of the, most common means of day trading is by using candle sticks. They are
critical to understand what price has done over a certain period of time. Unlike line charts,
(//instagram.com/p/B0oRAV0AR0T/
they give you a FULL understanding of how low priced fell during a period, how high price
)
rose during a period, and the opens and closes of each specific time period.
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Understanding how price reacted when trading outside of its open and close “body” is
very important to being able to understand how price is reactive to di erent price ranges,
news events, or times. There are two common types of wicks that we will look into and
discuss: wick rejections and wick exhaustion.
Categories

Bonds
Wick Rejections: Wick rejections are formed by an extreme shi in trader bias/sentiment,
(https://ateentrader.com/cate
we will see a single candle push deep into a range and then before the candle closes be
gory/bonds/)
violently taken over by the opposite market participants. When identifying this type of
wick, we want to attribute it with a strong volatile market that is very sensitive to di erent Crypto Currencies
zones and major trading sessions. (https://ateentrader.com/cate
gory/crypto-currencies/)
It is most common to see these types of wicks at the beginning of major sessions, at the
end of major sessions, or during times of high volatility news (like NFP or FOMC) Forex
(https://ateentrader.com/cate
Characteristics of Rejection Candles include: gory/forex/)

Large Candles Fundamentals

Large Wicks (typically in zones) (https://ateentrader.com/cate
Wicks will typically be large as or larger than candles gory/fundamentals/)
https://ateentrader.com/wick-rejections-vs-wick-exhaustion/ 1/5
8/2/2019 Exhaustion
Very common to see the majority of the wick pointing vsopposite
in the Rejectiondirection
Wicks | Ato
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Live Trades
that of the candle close (https://ateentrader.com/cate
During Major sessions gory/live-trades/)
During Major News
Stocks
Bullish/Bearish Pinbars ARE rejection candles
(https://ateentrader.com/cate
Examples of Rejection Candles gory/stocks/)

Technicals
(https://ateentrader.com/cate
gory/technicals/)

(https://ateentrader.com/wp-content/uploads/2019/01/reje.png)
-44% -39% -63% -36%

Rs 17,061 Right Hand S… Modern Que… Left Hand Si

4+ Door Wardrobes
-61% -15% -36% -36%

(https://ateentrader.com/wp-content/uploads/2019/01/rej.png)

These candles shown above meet all characteristics of a rejection wicked candle: they are Left Hand Si… Left Hand Si… Left Hand Si… Left Hand Si

during major trading hours, they have large wicks and large bodies (don’t have to have
large bodies, just can’t be dojis).

Archives

July 2019
(https://ateentrader.com/201
9/07/)

June 2019
(https://ateentrader.com/201
9/06/)

May 2019
(https://ateentrader.com/201
(https://i2.wp.com/ateentrader.com/wp-content/uploads/2018/12/rejectin.png? 9/05/)
fit=1024%2C479&ssl=1)
March 2019
Where we can see the first candle example come into play. During London/NY we see candles continuously push into a
critical zone (our previous LH) and we see large rejection wicks form as bears took over each time said zone was pushed into.
(https://ateentrader.com/201
9/03/)

Exhaustion Wicks: Exhaustion wicks are formed by much more subtle opposing market February 2019
players. When characterizing an exhaustion wick, we are typically looking at a sessions (https://ateentrader.com/201
slow times or during times of low volatility in the markets. We can see exhaustion wicks 9/02/)
creating short term pull backs during o sessions to further the move during the next
January 2019
major session or we can see exhaustion wicks initiate a longer short term pull back that
(https://ateentrader.com/201
may last a few sessions. Typically we will see the former.
9/01/)
It is most common to see these types of wicks during minor sessions and at the end of
December 2018
major sessions (if the session was slow).
(https://ateentrader.com/201
8/12/)
Characteristics of Exhaustion Candles include:
November 2018
Small Bodied Candles (Compared to rejection candles)
(https://ateentrader.com/201
Small Wicks
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8/2/2019 Wicks that go both ways Exhaustion vs Rejection Wicks | A Teen Trader 8/11/)
Have no clear direction
March 2018
No clear direction in the candles
(https://ateentrader.com/201
Does not have to be in or on a zone (in or on a zone will typically lead to larger reversals
8/03/)
rather than continuation moves)
Doji Candles are considered Exhaustion wicked candles February 2018
(https://ateentrader.com/201
Examples of Exhaustion Candles 8/02/)

January 2018
(https://ateentrader.com/201
8/01/)

December 2017
(https://ateentrader.com/201
7/12/)
(https://ateentrader.com/wp-content/uploads/2018/12/ex-1.png)
June 2017
(https://ateentrader.com/201
7/06/)

(https://ateentrader.com/wp-content/uploads/2018/12/exx.png)

All of these examples have the same things in common: they are during o sessions, the
Highest Dividend Stocks a
lead are just exhaustion until major sessions push markets further, and they are all small
bodies, small wicked (relative) and have no clear direction. Best High Yield Stocks a

Dividend Stocks To Buy a

Top 10 Dividend Stocks a

-36% -39% -61% -60%

Rs 61,879 Right Hand S… Left Hand Si… Left Hand Si

Left Hand Side...
-59% -37% -17% -36%

(https://i1.wp.com/ateentrader.com/wp-content/uploads/2018/12/Capture-2.png?
Modern Stu… Leatherette… Straight Mod… Left Hand Si
fit=1024%2C480&ssl=1)
As we can see, in all examples of the exhaustion wicks, we tend to see the market in slow sessions and the market pulls away
slightly before continue prior direction in major sessions.

Conclusion:

To conclude, understanding the di erence between exhaustion and rejection wicks is

important. It boils down to rejections typically come during major sessions and cause
reversals while exhaustion tend to occur during slower sessions and lead to fake reversals.

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 THIS POST HAS 5 COMMENTS

Lester Norris
10 FEB 2019 REPLY (/W ICK-REJECTIONS -VS -WICK-EXHAUSTION/?REPLYTOCOM = 9 4 7 # RE S P OND)

I very much enjoyed this article. I am thinking that you may have
inadvertently written rejection in stead of exhaustion in the subheadings
where you describe exhaustion candles.

ateentrader (https://ateentrader.com)
10 FEB 2019 REPLY (/W ICK-REJECTIONS -VS -WICK-EXHAUSTION/?REPLYTOCOM = 9 9 4 # RE S P OND)

Lester,
You are correct, i fixed it, thank you very much!
A Teen Trader

Md Sabbir Rahman
6 MAR 2019 REPLY (/WICK-REJECTIONS -VS -W ICK-EXHAUSTION/?REPLYTOCOM = 4 6 4 4 # RE S P OND )

a teen traders explanation are very e ective for learning …

MJ 17 APR 2019 REPLY (/WICK-REJECTIONS -VS -W ICK-EXHAUSTION/?REPLYTOCOM = 1 0 0 6 1 # RE S P OND)

man, thank you very much, it really helps my trading and I became a
profitable trader because of your educational blogs, videos, etc.
thank you for sharing your knowledge. God will bless you.

ateentrader (https://ateentrader.com)
20 APR 2019 REPLY (/WICK-REJECTIONS -VS -W ICK-EXHAUSTION/?REPLYTOCOM = 1 0 1 9 1 # RE S P OND)

Very glad to hear that MJ and I’m so glad I could help you on your
journey! Keep it up and thanks for all of the support

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A Teen Trader is an educational Site Only, The contents included in this website is not investment advice and are not meant to be taken as investment advice. Risk what you can a ord to lose

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