All language subtitles for Lesson 3.3 - Reinforcing Orderblock Theory [Rejection Blocks]

Okay folks.

Welcome back.

This is teaching 3.3 dealing
specifically with rejection.

Okay, let me ask you
a question real quick.

What do you see in this chart
at major highs and lows?

Take a moment.

Pause the video.

Okay.

You may have noticed these
old highs being violated and a

significant movement away from.

And we understand this as a
turtle soup or a false breakout.

It's important to understand that
it's probably easy for you to see

these in hindsight, when I pick them
out on the chart, but you probably

don't always, you probably don't have.

That much experience seeing them
come to fruition beforehand.

So in other words, you don't see them
forming in advance and it's because

you haven't spent enough time going
through the charts, seeing how they

form over and over and over again.

Now, obviously, and you may not have
noticed these, I'm pointing them out to

you here, but for some of you that have
been working with my content, maybe you've

seen other ones, but these two here.

Are the two majors can see have two
major false breaks above an old high,

a nice hall swing above a previous
high, and then a rejection and a

subsequent significant price swing lower.

And then we have a false break below
an old low, and we have a nice,

significant price rally higher,
but let's take a closer look down.

We have a old, low here has been violated.

So the cell stops below
that low has been running.

So we would expect repricing on the
upside looking, provide side liquidity,

the market trades above an
old short-term high here.

Pairing up the buys from the
previous low, with buy stops.

They can sell to with a movement
above the previous high.

Each one of these is a turtle soup.

The first bean, a turtle soup long,
the second being a turtle soup.

Down here.

We have an old load is violated where
cell stops have been raining up.

We have an old load here where
cell stops have been ran out.

The old high here were PI stops have been.

So you can see significant price
swings at looking at the daily

chart like this, and it gives you
a great deal of prognostication.

When you anticipate every time
a new high or low is formed, we

expect some measure of rejection.

That's the first anticipatory
price skillset that you should be

working towards developing because
it's the hardest one to groom in.

You.

Trade psychology.

Some of you probably understand that
higher high failure swing and lower,

low various swing or turtle suit long in
terms of sleep by some of you probably

aren't aware that there are other
distribution and accumulation patterns

that take place at highs and lows.

It's a single look at that.

Okay, we're gonna look at a bearish run on
buy-side liquidity or a turtle soup sell.

Now, let me see.

When you look at this price action
here, it should be pretty obvious.

After studying my material,
we have equal highs.

That's been ran out.

So there's my stops
above those equal highs.

It had been rainy out here.

We would reasonably expect to see
what form a sweep through and a

potential rejection and trade lower.

And that's what you would see here.

As an example.

Now, some of you probably can see this
relatively easy and the chart formations

and how a previous high or previous law
has been violated in the east subsequent

rejection, any retracement of a longer.

But I want to teach you tonight
a different approach to looking

at distribution and accumulation.

Okay.

Look at this pattern here.

Okay.

We're going to talk about a
bearish rejection block and.

And before we get into it now, the
ideal setups are found in major

to intermediate term down trends.

And the bearish rejection block
is when a price high has formed

with long wicks on high or highs.

It can be more than one candle that forms
the high of the candle stick or sticks

and price reaches up above the body of
the candle or candles to run the buy-side

liquidity out before the price decline.

Now you can see, there are several wicks
here, forming potential resistance.

Now a classic charters
would look at this as a.

Continuation pattern in
the form of a bull flag.

We taught earlier in this mentorship,
the false hoods that come along with some

of the classical chart patterns, price
does not move around because of animal

patterns or suppose that geometry and the
price action it's based on the orders.

Okay.

And looking at this price action here.

If this is near a overall
longer-term resistance level

or trading into a bearish.

For an old load that may not be
seen in this sample size of data,

but they can see prices ran up
higher for a good number of candles.

Then it starts moving into
a small consolidation.

But more importantly, I
want you to look real close.

Is there a strong likelihood that this is
going to go higher based on a continuation

pattern of like a bull flag or a pennant,
or is it showing underlying distribution?

Notice there's no higher
high here or is there

take notice of the highest body in
this formation and the most recent

candle that traded through it?

Price pushes above the
previous highest candles.

Scene right here that run above the
highest body's candle producers.

The distribution seen in the chart here.

Price does not need to make a higher
high, to have a failure swing by looking

at the bodies of the candle, which
is one of the first things I taught.

When I started teaching online, how
the foreign exchange market operates.

You don't need to have.

A great deal of understanding about
candlesticks, except for understanding

where the open high loan closes.

And if you follow every swing high
and low and you chart the open

high, low, and close, and you deal
specifically with the opens and

closes, you'll be able to fair it out.

What distribution and accumulation
takes place at these turning points.

As you can see, the real pattern here is
from this previous highest bodied candle.

Then the subsequent later higher
drive higher than this candle here

prior to this candle, moving up, this
candle was the highest body candle.

We're not paying too much
attention to the WIC.

The wicks highlight the
idea of this pattern.

Forming this pattern here, shooting above
this previous body or previous close.

Is it the highest close or
highest open in this swing high?

This candle here drives above it.

Clearing out to buy side
liquidity and then rejection.

Basically what we're
seeing is distribution.

So what is it really to
see a rejection block them?

What does it look like?

I have a crude depiction here
with a single wick candle.

Now this is going to be.

Better understood when there is
multiple candles that formed the

high in multiple wicks, you're still
looking at the highest close or.

You still looking for the highest open
or close inside the swing high that

forms the wicks are just drawing your
attention to a potential rejection block.

When you see the WIC, you have to build
the parameters for the rejection block

by finding the highest high and the
highest open or close in the swing high.

It does not matter if the highest candle
is it bearish or bullish closed candle.

You're still looking for the highest
high, with the highest open or

closing price into the highest WIC
that frames the rejection block.

So once we have the rejection
block defined by the highest Wix.

And the highest open or close in the swing
high that frames the rejection block.

And in your mind, you should be
viewing it like we have here,

take candle all in and of itself.

This range is going to be a selling block.

In other words, we treat
this as a bare shorter block.

When price trades back up to the low
of that range, that is your trigger.

Now you can do one of two things.

One, if you're aggressive, you can sell
at that price and put a significant

stop-loss above that particular
price level, where you can wait for

the trade through it a little bit.

And I'll leave that up to you in
terms of all the additional insights

that we'll be sharing over the
mentorship about entry patterns.

You can wait for it to
trade above that level.

And if it moves to nutrient amount
above that highest open or closed

in this case, it's the highest
close or that bullish spring candle.

If it trades above that particular level,
and it does not trade to a higher WIC

high, you could be a seller on a stock.

Below that level.

So that way you're going
to be selling on weakness.

This is one of the few times I use
selling on a stop as an entry pattern.

What it looks like in the charts.

Here's one example.

Here, we have a candle with a wick.

We use the highest body reference
point being open or close in

this case, it's going to be the.

And price trades above it.

Just a little bit violates that doesn't
make a new hire high and it makes

it run eventually for the sell side
liquidity below the marketplace there.

So rejection block for the
bullshit of the marketplace.

Is obviously in ideal scenarios,
it's in major intermediate term

uptrends and he bullish rejection
block is when a price low has formed.

And with a long wick or
Wix, it could be formed.

There were multiple candles and
the low or lows of the candle

stick worth candle sticks.

Again, it's not limited to just one
candle and price reaches down below the

body of the candle to run the sell side
liquidity out before price rallies.

Again, we frame the rejection order block.

In this case to bullish rejection
over block, it's going to be the

lowest WIC low and the lowest open
or the lowest close that makes

that swing low on the timeframe.

You're looking for the pattern.

Once you identify that you have
framed the bullshit rejection block,

and we treat this as like a bullish.

When price trades back down into
the high of the block, we can be a

buyer just below it, or we can wait
for price to trades through it.

It's a little bit longer term
timeframe that we wait for the

trade through it by a little bit.

And then we can be a buyer.

I want to stop just above that particular
level here again, the trigger is that hot.

Or the lowest open or the
lowest close in that swing low.

But the key is it has to be a
swing low that has a WIC or Wix

and price action.

This is what it looks like.

Price makes it previous low with Wix.

Martin comes down, trades down just
below the bodies of the candle, and they

may see a strong rejection because of
a massive accumulation that comes in.

It's not always required
to see a higher high for.

Which would be a turtle soup
cell or requiring always a lower,

low for a rejection for a turtle
soup long we can anticipate.

Levels like this to be taking profits at.

If we're short, in this case, I'm at the
market had been trading in our favor.

Only another type of setup.

We could look at the take profit
objectives to be covering the

short, just below the lowest open
or close in the previous swing.

We don't always demand that
price gets below the Wix.

It's really the bodies of the
candle, that the closest thing to

institutional owner standing, you're
going to get when you're using retail

price delivery mechanisms, like.

The platforms we have to trade
through from a retail perspective.

Hopefully this has been insightful.

We're going to have a lot more
information as we go along and we

start talking about specific entry
techniques, where we revisiting all

these things as well and amplifying them.

But I want you to go through your charts
and look for examples of rejection

blocks in their subsequent price
moves after their formation till the

next time when she good luck angry.