Price doesn’t speak… but it leaves clear signals when it rejects a certain area.
Learn trading with Derar-Hadri | Lesson 25: How to know if the price is rejecting a certain area?
Price rejection at a certain area means the price tried to break a significant level, like support or resistance, but failed to hold above or below it.
Simply put: when the price hits an area and long-wicked candles appear or quickly reverses, or closes far from the area, it may indicate price rejection.
Hypothetical educational example: let's say BTC/USDT reached a resistance area at $65,000. The price went slightly above it, but the candle closed below with a long upper wick. This doesn't necessarily mean an immediate drop, but it tells you there's clear selling pressure at that area.
How does a trader apply this concept?
Identify the key area on the chart.
Watch the shape of the candles when touching the area.
Watch out for long wicks and closes.
Don't judge based on just one candlestick.
Wait for additional confirmation from the next move or from trading volume.
Common mistake to avoid: jumping in the moment the price touches support or resistance.
The danger here is that a single touch isn’t enough. What matters is: how did the price act at the area? Did it break it? Did it fail? Did it close far from it? Was there clear rejection?
In summary: price rejection isn't read from the first touch, but from the market's reaction at the area.
Do you rely on wicks and closes to identify price rejection, or do you just stick to support and resistance levels?
Note: This content is for educational purposes only and is not financial advice.
