3 Step Guide to ICT Rejection Block

Ayub Rana Last Updated: January 16, 2024  0  146

Do you want to master ICT rejection block strategy like a pro to level up
your trading?
ICT rejection block is the setup formed at major highs and lows,
sometime after raiding the liquidity.
In this article we will be exploring the ICT rejection block strategy from
its formation to identification and to its use.
Now lets start with defining the ICT rejection block.
What is ICT Rejection Block?

ICT rejection block setup is based on the rejection wicks and liquidity
sweep. When price sweeps old highs or lows liquidity forming long
rejection wicks and shifting market structure, the long rejection wicks
are termed as rejection block.
ICT rejection blocks has two types which are explained below.
(I) Bullish ICT Rejection Block?
After sweeping the liquidity of old lows, when price low is formed with
long wick(s) and the price goes up shifting the market structure to buy
side then the long wick at the bottom is marked as rejection block.
And when price reaches down below the body of lowest open/closed
candle of rejection block (to run sell stops) you can execute a buy trade.
While trading a bullish rejection block your stop loss will be 10/20 pips
below the low of rejection block.
A real market example is shown below in the picture.

(II) Bearish ICT Rejection Block?

After sweeping the liquidity of old high, when price high is formed with
long wick(s) and the price goes down shifting the market structure to
sell side then the long wick at the top is marked as rejection block.
And when price reaches up above the body of highest open/closed
candle of rejection block (to run buy stops) you can execute a sell trade.
While trading a bearish rejection block your stop loss will be 10/20 pips
above the high of rejection block.
A real market example is shown below in the picture.

Final Thoughts

While using ICT rejection block in trading, we should keep in mind that
no strategy is foolproof in trading, so you should not risk all your capital
on this strategy.
Plus to mitigate your risks, you should always trade with stop loss in
place to keep your equity safe.

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