3 Step Guide to ICT Rejection Block

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.

Is ICT Rejection Block is Reliable for Trading?

Yes! ICT rejection block is the most reliable tool for trading.

As price may disrespect the ICT fair value gap or Order Block but the rejection block is the last PD array so it may deliver good amount of pips.

ICT Rejection Block VS Order Block

Both order block and rejection block are ICT PD array used to initiate a trade.

Both are reliable for trading with one difference.

Order Block may be found in between at 50%, 62% or 70% retracement level but the ICT rejection block will always be found at 80% or 90% retracement level.

So using ICT rejection block will increase your risk/reward ratio because in this setup your stop loss will be lower the the order block setup.