Market Structure & Liquidity · Entry 50 of 71

What Is a Rejection Block?

Wick rejections that identify key institutional limits

Core Definition

A Rejection Block is a price zone formed when the market shows a strong and immediate rejection from a level, indicating that significant buying or selling pressure entered the market. It represents an area where price quickly reversed after testing liquidity.

Key Properties

1. Forms when a candle shows strong rejection with a long wick.
2. Indicates that the market refused to trade beyond that level.
3. Often acts as a short-term support or resistance zone on future retests. Unlike Order Blocks, Rejection Blocks are identified by sharp price rejection (wicks) rather than consolidation body before the move.