How Mastering Price Action Rejections Transformed My Tralost $50,000 due to a lack of a disciplined strategy, relying too heavily on lagging indicators and reacting to market noise rather than understanding price behavior.
The turning point in my trading journey came when I embraced the concept of Price Action Rejections at critical support and resistance levels—an approach grounded in market psychology and pure price observation.
Challenges with Conventional Indicators
Most traders depend on:
Lagging technical indicators
Unreliable news signals
Conflicting trade setups
This often results in delayed entries, false signals, and emotional decision-making.
To overcome this, I adopted a strategy focused on candlestick behavior near key price levels, enabling clearer, more reliable trade entries.
Key Price Action Rejection Setups
1. Bullish Rejection at Support
Downward trend approaching a support zone
Formation of a bullish engulfing candlestick
Wick rejection indicating buyers defending the level
Entry upon confirmation with stop-loss management as price advances
2. Bearish Rejection at Resistance
Upward momentum testing a resistance zone
Formation of a rejection candlestick (e.g., shooting star)
Sellers gaining control
Entry on candle close with appropriate risk management
Benefits Realized
By applying these principles, I experienced:
Improved win rates
More precise entries and exits
Reduced overtrading
Increased confidence and trading discipline
This method not only facilitated financial recovery but also enhanced my overall trading approach.
Conclusion
For traders seeking consistency, focusing on price action at critical levels offers a more objective and reliable framework than relying solely on indicators or news. Candlesticks narrate the market’s intentions clearly—if you learn to interpret them correctly.
If you find this insight valuable, please consider sharing it with others who may benefit. Trading is challenging, but with the right approach, success is attainable.
Stay disciplined, trust the process, and always let the chart guide your decisions.