The core response to the long wick candles (with long upper wicks, long lower wicks, or double wicks) is not to focus on the wicks themselves, but to observe the position where the wicks appear + subsequent volume and price verification, to avoid being misled by "false breakouts/false support."

1. First, clarify the essence of "Long Wick Candle": a temporary imbalance in the long and short game.

A Long Wick Candle occurs when the price quickly spikes high (or dips low) within a certain period and then retreats (or rebounds), leaving a long shadow. It essentially means "one side temporarily gains an advantage, only to be quickly pushed back by the other side," indicating significant bullish-bearish divergence at the current position, and one cannot determine the direction based solely on a single Long Wick Candle.

II. Key Response Steps: 3 Steps to Determine if the "Long Wick Candle is a Signal or a Trap"

1. Step one: Look for the "key position" (core anchor point) where the Long Wick Candle appears.

The significance of the wicks is determined entirely by their "position." Focus on two core areas:

- Boundaries of the consolidation range (resistance/support):
For example, in the oscillation range of 1800-2000 points, when a "Long Wick Candle" appears at 2000 points (resistance level) (the price rushes to 2050 and then falls back to 2000), it is highly likely that the bulls' attempt has failed, indicating that the resistance is effective, and a pullback may follow; if a "Long Wick Candle" appears at 1800 points (support level) (the price tests 1750 and then bounces back to 1800), it indicates that the bears' attempt has failed, signaling that the support is effective, and a rebound may follow.

- Key levels in the trend (trend lines/moving averages/former highs and lows):
For example, in an uptrend, when the price retraces to the 10-day moving average and a "Long Wick Candle" appears without breaking below the moving average, it is a valid signal of trend support; conversely, in a downtrend, when the price rebounds to the 20-day moving average and a "Long Wick Candle" appears, it is a valid signal of trend resistance.

2. Step two: Look at the "verification of the next 1-2 periods" (to avoid false breakouts)

A single long wick candle is likely a "temporary game", and it is necessary to wait for subsequent price action confirmation:

- If a resistance level shows a "long wick candle", and the closing price the next day falls below the low of the wick's body with an increase in trading volume, it indicates that the bears are truly gaining strength, and you can follow up with a bearish outlook.

- If the support level shows a "long wick candle" and the closing price the next day breaks through the high point of the candle body, along with an increase in trading volume, it indicates that the bulls have truly stabilized, and one can consider following the bullish trend.

- If the subsequent price continues to oscillate within the range of the Long Wick Candle body, without direction and volume, the Long Wick Candle is considered "invalid" and is regarded as a continuation of the oscillation, with no action taken.

3. Step Three: Clarify the "Operating Principles" (no chasing orders, wait for confirmation)

- Do not make instant trades on "Long Wick Candle day": A single Long Wick Candle is often a "trap for bulls/bears". For example, chasing longs on a Long Wick Candle at a resistance level may likely get trapped at a high point;

- Only trade "validated trend orders": wait for confirmation of direction in the next 1-2 cycles (e.g., after a support long wick candle, when the price breaks through the body + increases in volume), then enter in the confirmed direction to reduce risk;

- Set strict stop-loss: If after entering the market, the price falls back to the key level of Long Wick Candle (for example, if it falls below the support after a Long Wick Candle at support), it indicates that the validation has failed, and you should immediately stop loss and exit.

3. Common Long Wick Candle Scenario Response Examples

1. Scene 1: Long Wick Candle at the upper edge of the consolidation range

- Characteristic: Price retreats after hitting the resistance level, with the wick longer than the body;

- Response: Do not chase long positions. If the closing price on the next day falls below the long wick candle's body, consider a light short position, with the stop loss set at the high point of the long wick candle.

2. Scenario 2: "Long Wick Candle at the lower edge of the range"

- Characteristic: Price rebounds after testing support level, with the wick longer than the body;

- Response: Do not short, if the next day's closing price breaks above the Long Wick Candle body, you can take a small long position, with a stop loss set at the Long Wick Candle low.

3. Scene 3: "Long Wick Candle" with a "lower wick" in an upward trend.

- Feature: Price retraces to the moving average/trend line, bounces back after forming a lower wick;

- Response: If the subsequent price stabilizes above the Long Wick Candle body and does not fall below the moving average, one can buy on dips, setting the stop loss below the moving average.

Summary: In response to long wick candles on the K-line, the core principle is **"position determines nature, subsequent verification, do not guess or chase, wait for confirmation before taking action"**, to avoid being misled by the "false fluctuations" of a single wick, and focus on the trend signals after the "true victory or defeat between bulls and bears".