Core Month 04 03 03 Rejection Block - newsqlguru/ict-index GitHub Wiki

ICT Mentorship Core Content - Month 04 - ICT Rejection Block

Key Terms

  • Rejection Block (RB)
  • Bearish Rejection Block (-RB)
  • Bullish Rejection Block (+RB)

Content

  • Bearish Rejection Block (-RB)

  • Ideal setup, during a major to intermediate term up trend.

  • Bearish Rejection Block is created when a price high has formed with long wick(s) on the highs(s) of the candlestick(s) and price reaches above the body of the candle(s) to run Buy Side Liquidity out before Price declines.

  • The -RB can be an up or down close candle in the swing high.

  • Long wicks help to identify RBs

  • The RB is the difference between the body and wick tip.

  • RBs are treated like an order block.

  • We can enter when price trades into the block with a stop above the top of the RB.

  • RBs are verified when price does not trade past the end of the wick that forms the RB.

  • Bullish Rejection Block (+RB)

  • Ideal setup, during a major to intermediate term down trend.

  • Bullish Rejection Block is created when a price low has formed with long wick(s) on the lows(s) of the candlestick(s) and price reaches below the body of the candle(s) to run Sell Side Liquidity out before Price increases.

  • The +RB can be an up or down close candle in the swing low.

  • Long wicks help to identify RBs

  • The RB is the difference between the body and wick tip.

  • RBs are treated like an order block.

  • We can enter when price trades into the block with a stop below the bottom of the RB.

  • RBs are verified when price does not trade past the end of the wick that forms the RB.

  • We can use RBs as trade entry or as trade exit if we are positioned in the opposite direction.

  • e.g. we trade short, when price hits the bullish RB below us we exit.

  • Don't demand that price trade past the wicks.

  • The bodies of the candles are the clearest thing we have to understand what institutions are doing.

Notes

  • Find 10 occurrences in past price action and log them in your trade journal.
  • Extra credit if found on multiple time frames.