Rejection Candles

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

Table of Contents

• Rejection Candles
• Types of Rejection Candles
  • Long Lower Wick/Shadow
  • Doji (Indecision)
  • Long Upper Wick/Shadow
• Key takeaways from this article
• Comments

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 aka Pin Bar

Types of Rejection Candles

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

Long Lower Wick/Shadow

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Doji (Indecision)

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Long Upper Wick/Shadow

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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)

Comments