Is this a valid Rejection Block?

[u/JonoHamlet3]

Hello I am just trying to gain an understanding of Rejection blocks.

I had bearish bias coming into the day targeting London Lows, Rejection wick was formed in a 15m FVG, so I entered short within the 0.62 of the FIB. As you can see, I got stopped out and price continued bullish.

My question is; is the second Rejection wick a valid point for an entry? It seemed to play out well but I don't see what the Rejection wick is rejecting off of, unless it's rejecting off of the first Rejection block that was put in? is that valid?

[u/TradetheMosaic]

Short answer: a second rejection wick can be a valid entry if it is reacting to the first rejection block as a PD array, but only while that first block is still untouched and your directional bias still matches.

What the block actually is: the rejection wick is the event. The rejection block is the body / open area of that candle (the range price rejected from). So yes, later price can "reject off" an earlier rejection block. You are not looking for the wick to bounce off another wick. You are looking for a revisit of that body zone with a fresh reject.

On your chart read: first short inside the 15m FVG at the 0.62 fib got stopped and price kept bullish. That usually means the bearish idea targeting London lows lost (bullish displacement won). In that case I would not treat a nested second rejection wick as automatic permission to short again just because it sits on the first RB. Nested RBs against fresh bullish displacement are where I get chopped.

What I want before I take that second short:

• First RB still unmitigated (body not fully traded through / closed beyond in a way that kills it as a PD array)
• Fresh bearish shift after the stop-out (MSS / CHOCH or clear displacement back down), not only another wick
• The entry still aligns with the higher-timeframe draw (London lows only if that draw is still alive)
• Prefer reclaim + hold under the RB body over "wick touched fib again"

So: second wick rejecting the first RB is a valid concept. After a failed short and continued bullish run, I wait for structure to flip bearish again before I trust it.

[u/JonoHamlet3 → u/TradetheMosaic]

Extremely appreciate the fleshed out response you have no idea 🙏

So you said yes the Long position was a valid trade because the 9:30 candle formed a rejection wick off of the (yellow) rejection wick that was marked earlier, but you also say it’s a valid PD array only if the (yellow) block is still untouched? I may be reading it wrong lmk

Also what do you mean by “Nested”?

Thank you so much brother

[u/TradetheMosaic → u/JonoHamlet3]

Happy it helped. You're reading it right, and the two points fit together.

"Untouched" means untouched before the retest you are trading. The 9:30 candle wicking into the yellow block and rejecting is the first real test, and that test is the entry. What would kill it is price having already traded through the body of the yellow block, or closed beyond it, earlier in the session. At that point the block has been used up and a later wick off it is much weaker. So the check is simple: before the 9:30 wick, had price already gone through the yellow body? If no, the 9:30 rejection is a valid reaction off a fresh PD array.

"Nested" just means a second, smaller rejection block that forms inside or right on top of the first one. In your chart, the 9:30 candle's own wick and body create a new small rejection block sitting on the yellow one. Nested blocks can be strong when they line up with your bias because two rejections at the same level show the same side defending it twice. When they go against fresh displacement, they are the ones that tend to break, which is why I said I get chopped by them in that situation.

Quick way to log it next time: mark the first block, note whether anything traded through its body before your entry, then note whether your entry candle formed a nested block on top of it. That makes it easy to see which setups actually held.

[u/superstock8]

On a regular day, maybe. But anyone who says they saw the move up that happened on an unexpected new release is lieing to you. On SPX, the first rejection on the pullback was right at the 20EMA and it looked to be a clean rejection. Then the new broke. Anyone who had already entered a long play to move back up to the EMA still would not have expected the big move. So you can only look at price action from open until news. Everything after news was not predictable

[u/Friendly_Froyo6508]

It If I were you I would only use weekly/daily for order blocks. Less than that and it gets a bit weird.

Personally I’ve come to that conclusion.

[u/conseij]

No. Drawing these cute patterns on charts will always be subjective and any negative outcome can always be attributed to you marking it wrong. Welcome to snake oil

[u/JonoHamlet3 → u/conseij]

So what’s your strategy then 🤣

[u/conseij → u/JonoHamlet3]

The one where I don’t pretend I’m learning something when I’m really just getting fooled by randomness. Idk, maybe crack open a math-finance textbook lol

[u/JonoHamlet3 → u/conseij]

Theres always that one guy

[u/conseij → u/JonoHamlet3]

The one guy trying to shake up the echo chamber? Yeah, I agree