[0:01]All right, boys and girls, there's probably like three girls, but whatever. Um, I'm making this video because I feel like I have to a little bit. I want to make an official video on rejection blocks because I see people keep trying to teach them. and they're just teaching it all wrong, so if you want some good information from the source, that's what I'm here for. So, I'm not going to bore you guys with the app too much, I'm going to get right into the charts, so, yeah, let's do it. Right, so, first of all, we're going to look at an example. And then we're going to jump into a trade that I took today using a reduction block. So, first of all, we're going to get into the very, very basics of how do we find a reduction block? What classifies as a reduction block?
[1:00]So, a rejection block, as I'm sure a lot of you guys know by now, is a wick, but it's not just any wick. I'm going to use this wick as an example in this case.
[1:11]We're going to mark it out like this.
[1:19]And we can see that it actually ended up working out. Now, this is not random, right? Why is this not random? First of all, for a rejection block to be valid, we need to have some confirmation in the form of a candle close. So, if I'm bearish, I can't just use an up-closed candle with a wick on top of it because that's not giving me any confirmation, right? If I'm bearish, I want to see a fat wick like this and then I want to see a bearish candle close. Now, here we have the very basic setup of our rejection block, right? But these closes, if you want to call them that, they occur all the time, every day, all day, and they fail a lot. So, what do we do with that information, right? We can actually put criteria on the rejection blocks to make them higher probability. So, if we pan over to the left of the chart right here, we can see we have a bunch of resting liquidity. Right? I'm not going to go over too much how I use liquidity. I'm going to do a separate video on that, but short and sweet, this is liquidity, right? We're sweeping out a bunch of liquidity. Now, you can stop there and say that's a good good enough for a deduction block, right? We swept liquidity and we had a bearish candle close. You can say that that's good enough. Your win rate might not be the best, but technically, if you want to simplify it to that degree, you can. Now, what can we make what can we do to make our rejection block even better, even more powerful, even higher conviction, right? So, if you look above these these resting highs, this resting liquidity right here, we have a level in the form of an order block right above it. Now, it doesn't have to be an order block. It can be an imbalance, right? Fair value gap, as you guys know. It can be a key open, it can be any like level, right? It can be a FIB level, it could be an opening gap, it could be anything. Any array, as long as we have liquidity below, we have those two confluence and stack together, we can actually go and make some killer rejection blocks. Um, let me just delete those lines to make this a little bit more tidy. So, we know now that this this wick right here, it swept out a bunch of liquidity, and we tapped into a bearish order flow level. So, with that information, we can go ahead and take an entry, right? If you want to be aggressive, your entry would be right here. This is what I like to call an entry trigger entry, right? We're using this wick as an entry trigger and we're having our stop loss right above it. And then for targets, obviously, you guys trade differently. I'm not going to tell you what to do, but all of this, if we go to the one minute time frame, is low resistance liquidity. So, you can aim for the very low of the low resistance liquidity range, or you can aim for internal structure like imbalances, right? In this leg, or in you can aim for a fib level, you can aim for whatever. You guys trade differently than me, as I said. This is an example of a high probability rejection block and how I would use it in this case. Now, let's go into the trade that I took this morning using a rejection lock. Now, why is this a good enough rejection block? This was a one-minute trade, and my confluences were on the 15 and five-minute. As you can see, we have a bullish rejection block right here in the form of this bullish candle close. Now, why is this a valid rejection block? It's because we tap into some interesting structure on the left side of the chart here on multiple different time frames. And then if we tap into my bullish level, I want to see a rejection block getting made for me to enter the trade. Now, I got a little bit of a wonky entry on this, but the risk was still good, so didn't really matter to me. Um, as I said before, we have our stop loss below right below the order block. We almost got stopped out. And then what I aimed for was literally just the closest short-term high on the one minute, which was, in my opinion, the first place where we could potentially reverse back to bearish.
[6:15]So, it can just really be that simple. You don't really have to overcomplicate it that much. You just need a level or some liquidity, and then you need the actual rejection block to get formed. Boom, snip your entry, have your stop loss at the high or low of the rejection block depending on if you're bullish or bearish, and then you just aim for some internal structure or a static RR. It's up to you. So, hopefully, you guys found this, um, helpful. I felt like I had to make this video because people just teach like fucking orangutangs these days. Um, and they're not even profitable with what they're teaching, so. You guys have seen me post payouts every week for the past, I don't even know. You guys have seen me post my actual payouts for like months and months and months, and this is one of the models that I used to achieve that. So, yeah, hopefully that was helpful. And uh, I'll make some more YouTube videos, so stay tuned for that. And uh, yeah.
