Wick Theory Checklist

A simple check list for Powell's Wick Theory with the following:

🔹 1. Liquidity Sweep
Has price taken out recent highs/lows (previous liquidity)?

Is the wick longer than usual, indicating a stop hunt?

Did the sweep occur during a key session (e.g., London, New York open)?

🔹 2. Imbalance
Is there a clear fair value gap (FVG) or imbalanced candle near the wick area?

Is price rejecting from the imbalance, not just sitting inside it?

Is the imbalance aligned with higher timeframe structure?

🔹 3. Rejection Block
Has a strong candle body rejected from the wick zone?

Is the rejection block respected on a retest?

Are there multiple rejections or confirmations at this block?

🔹 4. Engineered Liquidity
Was liquidity built up intentionally (e.g., equal highs/lows, tight consolidation)?

Did price fake out in one direction first before sweeping the opposite side?

Are retail traps evident (e.g., false breakouts, trendlines)?

🔹 5. SMT Divergence (Optional)
Are correlated instruments showing divergent liquidity grabs?

Is one instrument making a higher high while another makes a lower high?

Does this divergence happen at or near key zones (POI, FVG, OB)?