Rejection Block :
- Every time a new high or low is formed we anticipate some sort of rejection, that is the first anticipatory price skill set you should be working on because it is the hardest.
Bearish Rejection Block :
Bearish Rejection Block is when a High has formed with long wicks on the high(s) of the candlestick(s) and price reaches up above the body of the candle(s) to run Buy Side Liquidity out before price declines.
Bullish Rejection Block :
Bullish Rejection Block is when a Low has formed with long wick(s) on the low(s) of the candlesticks) and price reaches down below the body of the candle(s) to run Sell Side Liquidity out before price rallies higher.
- This marks a shift into a Premium array and often signals a bull flag formation. Remember, price doesn't always need to make higher highs for a failure swing.
- Understanding price action basics - open, high, low, close - and focusing on swing highs and lows can revealβ¦
- While wicks indicate pattern formation, focus on the highest close/open at the swing high. It's not about whether the candle closes bullish or bearish - the wick signifies a Bearish Order Block.
- This is one of the few instances where selling on a stop order is used as anβ¦
- Rejection Blocks can span multiple candles; they're not limited to just one candlestick. Keep an eye on these patterns for insightful trading decisions.