The Rejection Bar Candlestick

If forced to nominate the best candlestick pattern, this would have to be it…

The rejection bar is a one bar formation. The rejection bar is also commonly known as a pin bar, a hammer or an inverted hammer. Its reputation as the best candlestick is well earned, and it forms the crucial candle in forex patterns such as the Hammer, the Hanging Man, the Inverted Hammer, and the Shooting Star. Here are some illustrations:

Rejection Bar Candlesticks At Round Number

Rejection bar candlesticks at a round number

Rejection Candlestick At the Bollinger Band Mid-Band

A bullish rejection from the mid-Bollinger Band

Hammer Candle Rejection Bar At Round Number

Several attempts at the round number have culminated in a bullish pin bar immediately prior to a price breakout.

Rejection Bars at Bollinger Band Mid-Band

After breaking below the Bollinger mid-band, price forms 2 rejection bars and heads straight down.

Bullish Rejection Bar Retesting Bollinger Band Mid-Band

Price forms a base above the Bollinger mid-band and a bullish rejection bar spiking from it confirms the move up.

Rejection Bars Failing at Round Numbers

Price breaks below the round number, makes a failed attempt to get above it, forms a bearish rejection bar spiking from it and heads down. Note another rejection bar at the next round number repeating the behaviour.

Note that all these rejection bars above have been identified with respect to one strategy only: the Bladerunner. Rejection bars are not only powerful but also commonly encountered in forex trading. Practice looking for them and you will begin to find them everywhere!

We can define this candlestick formation in the following way:

  • It is a forex candlestick which has rejected higher or lower prices. Price will open and move in one direction, and then reverse during this single candle session to close at or past the open.
  • Ideally, the open and close of the rejection bar are very close together, the closer the better.
  • Ideally, the open and close of the rejection bar are near one end of the bar, the closer to the end the better.
  • The tail of the rejection bar should be at least equal to the body; the longer the tail of the rejection bar the better, generally speaking, since this signifies greater rejection from the high or the low.
  • The head of the rejection bar is defined as the highest point price reached on the candle – for a bullish rejection bar – or the lowest point price reached on the candle for a bearish rejection bar.

The rejection bar should never be traded on its own, of course. The more supplementary signals we have for price rejecting from the same level that the tail of the rejection bar retreated from, the better.

Even so, if price rejects from a significant level such as the mid-band of the Bollinger bands, a weekly pivot, or a significant support and resistance level, and at the same time the rejection forms an obvious rejection candlestick, we have a fairly strong signal, shown in several examples above.

Trading this particular candlestick without supplementary signals is an advanced technique, best left to seasoned traders who employ it as one of their personally favoured tools. However, it is worth noting the power of this candlestick in formations such as those mentioned earlier. If you see a rejection bar forming up on its own, look for a confluence of reasons to enter the trade. It really is powerful stuff!

The next topic in our candlesticks section is devoted to multiple time frame candlestick trading. This involves the use of more than one time frame chart at the same time to scan for candlestick formations.

Click here to go to Multi-Time Frame Candlestick Trading


    • Erron says

      Hi Franky, they can be found on ANY timeframe! Their significance is the same, only it is relevant to the timeframe it is found on.



  1. Tino says

    Hi erron

    I’m writing to you out of sheer frustration I have read your story and it is similar in some respects to my trading journey however I am still struggling and I can’t seem to break through and start making a profit , Why am I finding it so difficult to break through I have put off the temptation of paying a mentor simply because I can’t afford one , I have immense passion for trading and determination I have never failed at anything that I have tried my hand at in life but trading just iludes me I need some genuine advice or at least a good phone conversation to help see where I’m going wrong, I live locally and can be available if some is willing to help me, I’m missing something in trading but I just seem to be going around in circles I have never been so frustrated but I refuse to give up can you help or advise me thanks Tino

    • Erron says

      Hi Tino,

      Sorry but I’m flat out at the moment, but I have taken note of your number and will call you in the next 24 hours or so, if that is okay?

      Don’t despair!


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