# How Deceptive is the Long Wick Candle? Dark Pits Every Crypto World Trader Must Know

Have you ever had this experience: staring at the candlestick chart, and suddenly the coin price plummets or skyrockets, only to immediately drop back down? That is the **Long Wick Candle**—the most common "ghost kick" in the crypto market.

# # How does a Long Wick Candle come about?

In simple terms, there are a few reasons:

**Insufficient Trading Volume** — Some trading pairs have such poor liquidity that a single large order can cause the price to skyrocket.

**Exchange mechanism is poor** — Some exchanges do not have adequate risk control, making it easy for arbitrageurs to exploit loopholes.

**Market Manipulation** — Although this situation is rare, it does exist. Some individuals intentionally create false signals to trigger stop-loss orders.

# # Why is the Long Wick Candle so frustrating?

**Spot traders**: Not much impact. Price volatility is too fast to react, but it recovers in just a few seconds, which basically does no harm to long-term holders.

**Contract Trader**: This is deadly. You have a position with 10x leverage, and as soon as a Long Wick Candle appears, the price instantly breaks your stop-loss line, and the system directly forces a liquidation. You haven't even reacted, and the loss is already locked in. Especially when using the price of a single exchange as a reference point, the risk doubles.

# # How to avoid this pit?

**1. Refer to the prices of multiple exchanges** — Don't just look at one exchange; cross-verification is more reliable. The average price calculated from major exchanges is much more trustworthy than that of a single exchange.

**2. Enable Abnormal Price Filtering** — The exchange should establish a fault tolerance mechanism to automatically identify abnormal fluctuations and exclude obviously abnormal price data.

**3. Optimize the liquidation mechanism** — Don't let the Long Wick Candle cause instant liquidation. There should be an early warning to give traders time to react.

**4. Upgrade Monitoring System** — Strengthen anti-cheating monitoring for transaction proceeds to promptly capture instances of human manipulation.

**Summary**: Long Wick Candle is something that is hard to guard against, but by choosing large exchanges, using multiple price references, and reasonably controlling leverage multiples, risks can be significantly reduced. This is especially true for those trading contracts; these protective measures cannot be neglected.