What Is Price Rejection?

Price rejection occurs when the market trades into an area but fails to maintain that price.

Price may temporarily move through support, resistance, a previous high, a previous low or another significant zone before being pushed back.

That failed movement often creates a wick.

What Is Bullish Rejection?

Bullish rejection occurs when price moves lower but buyers regain control before the candle closes.

This typically produces a noticeable lower wick.

What Is Bearish Rejection?

Bearish rejection happens when buyers initially move price higher but sellers overwhelm that advance before the candle closes.

The result is often a prominent upper wick.

What Is a Pin Bar?

A pin bar is a popular name for a candlestick with a relatively small body and a prominent wick extending from one side.

The long wick represents the price area that failed to hold.

Anatomy of a Bullish Pin Bar

A bullish pin bar typically has a long lower wick and a smaller body toward the upper portion of the candle.

Anatomy of a Bearish Pin Bar

A bearish pin bar normally has a long upper wick with the body positioned toward the lower part of the candle.

Does the Color of a Pin Bar Matter?

Less than many beginners think.

A bullish rejection candle can technically close slightly below its open and still show powerful rejection of lower prices.

Likewise, a bearish rejection candle may close marginally above its open while still showing strong rejection from a resistance area.

Wick-to-Body Relationship

A quality rejection candle generally has a wick that is clearly significant relative to its body.

There is no universal mathematical ratio that every pin bar must satisfy, but the rejection should be visually obvious.

Location Is More Important Than the Pattern

A perfect-looking pin bar in the middle of random price action may be almost meaningless.

The same candle at a major structural level can become much more important.

Why Random Pin Bars Fail

Candlestick charts naturally produce long wicks.

If you scroll through enough charts, you can find pin bars everywhere.

That does not mean every one represents an actionable reversal.

Bullish Rejection at Support

One of the most logical places to evaluate bullish rejection is around meaningful support.

The wick becomes meaningful because lower prices were rejected at a location where buyers already had a reason to become interested.

Bearish Rejection at Resistance

Rejection After a Liquidity Sweep

This connects directly to what you learned in Module 2.

Previous highs and lows can contain clusters of stop orders and breakout orders.

Price may move through that area, trigger those orders, and then immediately reject.

Rejection Candles and False Breakouts

A rejection candle can be the visual evidence left behind by a false breakout.

That candle communicates something very different from a candle that closes strongly at 1.1020 and continues higher.

Rejection Wick vs. Genuine Breakout

The Close Separates Exploration From Acceptance

During the candle, price may move anywhere.

The close tells you where price ultimately finished.

Why Rejection Still Needs Confirmation

A rejection candle shows that one attempt failed.

It does not guarantee the market will reverse.

Price can reject an area temporarily and then return moments later to break through it successfully.

Rejection + Change of Character

One of the strongest ways to add context is to combine rejection with a structural change.

Instead of buying simply because a long lower wick appeared, you wait for evidence that buyers have actually begun changing the short-term structure.

Watch What the Next Candle Does

The candle immediately after rejection can provide useful information.

Rejection With the Trend vs. Against the Trend