okay folks welcome back this is teaching 3.3 dealing specifically with rejection blocks okay let me ask you a question real quick what do you see in this chart at major highs and lows now take a moment pause the video here okay you may have noticed these old highs being violated and a significant movement away from that 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 you may not have noticed these and 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 okay so you have two major false breaks above and on high a nice false swing above a previous high and then a rejection and a subsequent significant price swing lower and we have false break below an old low and we have a nice significant price rally higher let's take a closer look now we have a old low here that's been violated so the cell stops below that low has been ran out so we would expect repricing on the upside looking for buy 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 a previous high each one of these is a turtle soup the first being a turtle soup long the second being a turtle soup a cell down here we have an old load that's violated where cell stops have been ran out we have an ola over here where cell stops have been ran out we have an old high here where pi stops have been ran out 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 skill set you should be working towards developing because it's the hardest one to groom in your trade psychology some of you probably understand that higher high failure swing and lower low various swing or turtle suit long and total sleep by some of you probably aren't aware that there are other distribution and accumulation patterns that take place at highs and lows let's take a look at that now okay we're gonna look at a bearish run on buy side liquidity or a turtle soup cell now obviously 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 buy stops above those equal highs in there have been ran 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 in the chart formations and how a previous high or previous low has been violated in a subsequent rejection and a retracement of a longer magnitude 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 before we get into it the ideal setups are found in major to intermediate term downtrends and the bearish rejection block is when a price high has formed with long wicks on the high or highs it can be more than one candle that forms a 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 declines as you can see there are several wicks here forming potential resistance now a classic chartist would look at this as a potential continuation pattern in the form of a bull flag we talked earlier in this mentorship the falsehoods that come along with some of the classical chart patterns price does not move around because of animal patterns or supposed geometry in in 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 order block or an old load that may not be seen in this sample size of data but you 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 body seen right here that run above the highest body's candle produces 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 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 fare 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 this candle here prior to this candle moving up this candle was the highest body candle we're not paying so much attention to the wick the wicks highlight the idea of this pattern forming this pattern here shooting above this previous body or previous close is the highest close or highest open in this swing high this candle here drives above it clearing out the buy side liquidity and then rejection basically what we're seeing is distribution so what is it really to see a rejection block and what does it look like i have a crew depiction here with a single wicked candle now this is going to be better understood when there is multiple candles that form the high and multiple wicks you're still looking at the highest close or high you're 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 wick 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 a bearish or bullish closed candle you're still looking for the highest high with the highest open or closing price into the highest wick that frames the rejection block so once we have the rejection block defined by the highest wicks high 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 a candle all and of itself this range is going to be a selling block in other words we treat this as a bearish order 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 or 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 or you can wait for it to trade above that level and if it moves significant amount above that highest open or close in this case is the highest close or that bullish green candle if it trades above that particular level and it does not trade to a higher wick high you could be a seller on a stop below that level so that way you can 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 closed in this case it's going to be the open 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 bullish side of the marketplace is obviously in ideal scenarios it's in major intermediate term uptrends and a bullish rejection block is when a price low has formed with a long wick or wicks it could be formed over multiple candles and the low or lows of the candle stick or 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 higher again we frame the rejection order block in this case the bullish rejection order block it's going to be the lowest wick low and the lowest open or the lowest close that makes that swing low on the time frame you're looking for the pattern once you identify that you have framed the bullish rejection block and we treat this as like a bullish order block 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 trade through if it's a little bit longer term time frame uh we wait for it to 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 high 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 wick or wicks in price action this is what it looks like price makes a previous low with wicks mark comes down trades down just below the bodies of the candle and then we see a strong rejection because of a massive accumulation that comes in it's not always required to see a higher high for a failure swing which would be a turtle soup cell or requiring always a lower low for a rejection for a turtle sheep long we can anticipate levels like this to be taking profits at if we're short in this case if the market had been trading in our favor on 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 low don't always demand that price gets below the wicks it's really the bodies of the candle that the closest thing to institutional understanding you're going to get when you're using retail price delivery mechanisms like the platforms we have to trade through from 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 we'll be 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 next time wish you good luck and good trading