Rejection Candles

In this article we are going to learn about “Rejection Candles” with volume and what it revels.

Table of Contents

Rejection Candles

There are many types of candle patterns but we are only interested in the candles which either reject price going up or down.

A rejection candles has long wick more longer than the body the better. Ideally out of 100% of the body 75% must be wick. (rare case according to individual back test wick can be 60%)

Rejection-Candle

Rejection Candle aka Pin Bar

Types of Rejection Candles

Types-of-Rejection-Candles

As you can see in the above image there are 7 rejection candles.

Long Lower Wick/Shadow

Doji (Indecision)

Long Upper Wick/Shadow

Key takeaways from this article

You just have to remember only the 3 candles as below:
1. Long Lower Wick/Shadow
2. Doji (Indecision)
3. Long Upper Wick/Shadow

7 Rejection Candles to remember are as follows:

Candles which are Long Upper Wick/Shadow are
1. Shooting Star (Bearish)
2. Inverted Hammer (Bullish)
3. Gravestone Doji (Bearish)
Candles which are Doji (Indecision) are
1. Doji (Indecision)
Candles which are Long Lower Wick/Shadow are
1. Hammer (Bullish)
2. Hanging Man (Bearish)
3. Dragonfly Doji (Bullish)

Rejection Candles ​