Institutional Candlestics Types

There are broadly two types of institutional candlesticks: 

  • Candles with big wick – Rejection candlesticks
  • Full body power candles – Shows strong decisions

Candles with big wick

  • Wicks shows important price zones on the chart. Reason being significant wicks on important zones shows rejection of these prices.
  •  Example


  • A strong engulfing candle at a trendline support along with a demand area marks a new higher low creation.
  • As a result the market broke its last swing high after creating this higher low.

2 - If the market is sideways:

● In a sideways market. We should wait for a range breakout/breakdown and then make our decision on re-test. 

  • Example



  • A strong wick rejection on an important psychological rejection level of 20,200 showed us the presence of institutions on these levels rejecting these price zones. 
  • As a result the market tried again to claim these levels with an up move but failed and saw significant selling from there.

Full body power candle

  • Full body power candles show domination at particular levels in the markets. Only institutions have the capacity to move the market in a way that such full body power candles are formed.
  • Example

  • Strong full body power candle on an important support showed institutional interest at these price levels.
  • As a result the market again tried to claim these levels but got rejected and saw a significant up-move from levels. 
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