📍 Rejection Candles in Technical Analysis: How Do They Reveal Hidden Market Decisions?
Rejection candles represent indirect messages from the market.
They tell you that the price attempted to move in a certain direction but encountered strength that stopped its movement at a specific level.
Simply put:
The market told the price "Only up to here."
🔍 How to Identify a Rejection Candle?
To recognize a true rejection candle, look for the following characteristics:
A long, clear shadow (tail)
A small body compared to the shadow
Its appearance near significant support or resistance areas
These elements mean that the attempt to break out has failed.
📈 Bullish Rejection Candle
Its characteristics:
A long lower tail
Often appears at support areas
Its implication:
Sellers tried to push the price down, but buyers intervened strongly and pushed the price back up.
👉 It may indicate a potential bullish reversal.
📉 Bearish Rejection Candle
Its characteristics:
A long upper tail
Often forms near resistance levels
Its implication:
Buyers attempted to break out, but sellers rejected the continuation of the rise.
👉 It may signal a potential bearish drop.
⚠️ Important Alert for Professionals
A rejection candle is not an immediate entry signal.
Its true strength is shown when:
It aligns with a strong technical area
There is additional confirmation (trading volume, structural break, price pattern)
The more the candle is at a sensitive level, the greater its credibility.
📘 Rejection candles are not just a shape on the chart,
but a psychological reading of the struggle between buyers and sellers.
#تعليم_التداول #التحليل_الفني🔍 #شموع_يابانية #PriceAction