Institutional buy orders absorbed selling pressure within the wick. Enter LONG on retest of the wick zone. Stop below the wick tip. Target: BSL / AMD bullish delivery level above. AMD context: discount zone, bullish AMD day.
Institutional sell orders absorbed buying pressure within the wick. Enter SHORT on retest of the wick zone. Stop above the wick tip. Target: SSL / AMD bearish delivery level below. AMD context: premium zone, bearish AMD day.
| Attribute | Order block | Rejection block |
|---|---|---|
| Zone on the candle | BODY (open to close) | WICK (body extreme to wick tip) |
| What it represents | Institutional accumulation/distribution | Institutional rejection at a level |
| Entry location | Within the body range, at the OB CE | Within the wick range, at the body extreme |
| Stop placement | Beyond the OB extreme wick | Beyond the wick tip |
| Validation | Displacement after the OB candle | 4 validity criteria (wick >50%, level, close, sustained) |
| Priority | Highest (★★★★★) | Medium (★★★) |
Wick >50% of total range, extending into a meaningful structural level, decisive close away from the extreme, and 1–3 subsequent candles respecting the wick tip. Without all four, it is an ordinary wick.
Draw a rectangle from the candle body extreme (body high for bearish, body low for bullish) to the wick tip. This is the rejection block zone. The body is the OB zone — different block, different zone.
The body extreme bordering the wick is the first reaction level within the zone — equivalent to the FVG CE within an OB. Price reaching this level is the first confirmation of a potential reaction.
When price retraces into the wick zone, wait for LTF CHoCH or a rejection candle within the zone. Enter on the confirmation. Stop beyond the wick tip.
Bullish rejection block: target BSL or AMD distribution level above. Bearish: target SSL or distribution level below. Trail on LTF BOS events as the move develops.
Most wicks fail at least one of the four criteria. C2 (meaningful structural level) eliminates wicks into open space. C1 (wick >50%) eliminates candles with proportionally small wicks. Apply all four criteria before marking any wick as a rejection block.
The body is the OB zone. The wick is the rejection block zone. Entering from the body on a rejection block trade produces incorrect entry levels and misplaced stops. OB = body. Rejection block = wick. Always.
A bearish rejection block in the discount zone is low probability — institutional buyers are more active than sellers below the CE. Apply the same P/D quality filter as every other PD array.
C4 is both a validity check and an ongoing status check. Once any candle closes beyond the wick tip, the rejection orders are absorbed. The zone is mitigated. Remove it from active monitoring immediately.
Both involve a wick sweeping a level and closing back. The distinction: turtle soup is the AMD reversal signal; rejection block is the PD array zone. The same candle produces both — the sweep signals the reversal, the wick zone marks the institutional orders for the retest entry.
Lio has traded ICT and Smart Money Concepts on forex majors and US indices since 2021 and built LiquiditySweeps.com to teach the framework the way it should be learned: in sequence, on real charts, with free live tools instead of paid indicators. Every article on this site follows the same rule — nothing gets published that wouldn’t survive a trade review.
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