Mastering the Bearish Rejection Block 📉
Ever see a sudden price spike that gets immediately swatted back down? You might be looking at a Bearish Rejection Block. Understanding this can save you from "buying the top" and help you spot high-probability reversals!
🔍 What is it?
A Bearish Rejection Block occurs when price pushes above a previous high (liquidity grab) but fails to close there. Instead, it leaves a long upper wick and closes back inside the previous range.
It signals that big players (Smart Money) are using that upward momentum to fill their sell orders, "rejecting" higher prices.
🛠 How to Trade It
1. The Wick: Look for a long wick that reaches above a swing high or resistance level.
2. The Close: Wait for the candle to close significantly lower, confirming the rejection.
3. The Entry: Traders often look for a sell entry when price returns to the body or the 50% mark of that long wick.
4. The Target: Aim for the "sell-side liquidity"—the lows where buyers have placed their stop losses.
💡 Pro Tip
Always look for this at key resistance levels on higher timeframes (4H or Daily) for the best accuracy!
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