Candle Wick Analysis

🔍 What This Indicator Does
The Candle Wick Analysis indicator dynamically colors each candle body based on the comparative strength of its wicks and body, helping traders visually assess market sentiment, rejection zones, and momentum exhaustion with higher clarity.

This tool is especially useful for:

• Price action traders
  
• Scalpers
  
• Reversal and trend continuation traders
  
• Anyone who uses candlestick structure for confirmations
  

📊 How It Works
The indicator analyzes each candle and compares the percentage change of the upper wick, body, and lower wick relative to the opening price. Based on this relationship, it assigns a green or red color to the candle body to indicate likely price strength or weakness.

🧠 Logic Breakdown
✅ If the Candle is Bullish (close > open):
🔵 Green Candle Body: If the upper wick is smaller than the combined percentage size of the body + lower wick
→ Indicates strong bullish momentum with low upper rejection.

🔴 Red Candle Body: If the upper wick is larger than body + lower wick
→ Suggests potential exhaustion or rejection at the top.

✅ If the Candle is Bearish (close < open):
🔴 Red Candle Body: If the lower wick is smaller than the combined percentage size of the body + upper wick
→ Indicates strong bearish momentum with low lower support.

🟢 Green Candle Body: If the lower wick is larger than body + upper wick
→ Suggests potential downside rejection or support zone bounce.

⚪ Neutral Candles:
If the candle does not meet any specific wick/body criteria, it is displayed in gray to indicate neutrality or indecision (such as a doji).

🛠️ Technical Highlights

• Built in Pine Script v5
  
• Uses precise percentage-based wick/body comparison
  
• Works on any timeframe and instrument
  
• Minimalist coloring style: only the body color changes, while wicks stay gray
  

💡 Use Cases

• Quickly spot exhaustion candles, where strong wicks may indicate a reversal or trap.
  
• Validate trend strength: strong candles are colored green, weak ones red, even within bullish or bearish structures.
  
• Filter entries and exits using visual confirmation of wick-to-body dynamics.
  

📌 Notes

• This is a visual tool, not a buy/sell signal indicator.
  
• Best used in conjunction with other forms of analysis (support/resistance, volume, moving averages, etc.)
  
• Can be enhanced with alerts, filters (e.g., volume spikes), or labeling based on user feedback.