A rejection block is a specific order block form that rests at the wicks of key swing highs or lows.
Anatomy of a Rejection Block
When price runs a high but prints a long wick with a candle body closing below, the smart money placed orders directly inside that wick.
- Bullish Rejection Block: The wick of a swing low. We set buy limits at the open of the candle wick.
- Bearish Rejection Block: The wick of a swing high. We set sell limits at the open of the candle wick.
This provides extremely tight stop placement.
