How Price Action Rejections Saved My Trading Career
I still remember the gut punch of watching my account bleed $50,000. It didn’t happen overnight—but it felt like it. Every wrong trade chipped away not just at my balance, but at my confidence.
I was doing what most struggling traders do:
Relying on lagging indicators
Chasing news headlines
Jumping on “hot tips”
Overtrading without a plan
It was gambling disguised as trading. And I was losing, badly—until I discovered one concept that flipped my trading approach upside down:
Price Action Rejections at Key Levels
🚨 The Wake-Up Call
Indicators can help, but they’re always late. By the time a moving average signals a trend, that trend might be exhausted. News? It's already priced in. I needed clarity. I needed control. And I found both by going back to the source: pure price movement.
Once I stripped my charts clean, I started noticing something powerful:
Price reacts to key levels—not randomly, but with purpose.
These moments of rejection—when price tests a level and fails to break it—became my edge.
🔍 Understanding Price Action Rejections
Let’s look at two life-changing patterns I use to this day.
Scenario 1: Bullish Rejection at Support
This setup is golden when the market is falling but preparing to reverse.
What to Look For:
Strong bearish move into a support zone
Sudden slowdown in momentum
Bullish engulfing candle or hammer with a long wick
Buyers stepping in clearly and aggressively
My Entry:
I wait for the bullish confirmation candle to close, then enter with a tight stop just below the rejection wick. I trail my stop as the price climbs.
✅ This setup taught me patience. I stopped selling too early and learned to trust the reversal.
Scenario 2: Bearish Rejection at Resistance
When the market rallies into a ceiling, this pattern helps me short with conviction.
What to Look For:
Price rallies into resistance (often a previous support)
A shooting star, pin bar, or bearish engulfing forms
Rejection wick shows sellers are defending the level
