Powell Trades | Rejection Wicks Dumb Money Concepts

Finance / Trading Content Summary

The speaker explains and demonstrates an intraday “rejection block” / “rejection wick” trading concept, emphasizing precise entries around specific price levels to improve risk-reward.

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Core Concept: What a Rejection Block Is

A rejection block is described as:

• The start of a wick that forms after price sweeps highs
• Followed by a large rejection wick (a sharp rejection move)

Price may then:

• Pull back to retest
  • the start of the wick (sometimes “touches CE,” sometimes simply the wick-start level)

Trade idea: take the trade after price re-enters the rejection block.

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“Engineered Liquidity” / Target Zone

A “good trade” is when the rejection block aligns with:

• Built-up liquidity (e.g., after sweeping highs)
• An “engineered liquidity” area right below CE (as described)

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Fibonacci Framework / Favored Entry Window (Golden Pocket / OTE)

The speaker references a fib-based entry zone:

• 0.62 to 0.79
  • referred to by some as the “golden pocket” / OTE

If a PD array interest aligns with this fib region, it’s presented as higher probability.

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Why Rejection Blocks Are Advantageous (Speaker’s View)

The speaker claims rejection blocks can offer:

• “Really really good risk-reward ratios.”
• Improved discount/premium entry
  • even if the rejection wick isn’t huge, the entry can still be discounted (or more premium, depending on direction)

They also present it as psychologically appealing:

• The setup may look “scary” to enter (price moves away from you)
• But the speaker argues the “scary” movement reflects manipulation / liquidity hunting, not true continuation.

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Example / Execution Details (No Ticker)

• The speaker mentions trading pre-market
• They describe a scenario before New Year’s / before market open

Key execution framing:

• The rejection block is “essentially just the opening price of this candle”
  • referencing a 3:00 a.m. candle as the wick’s starting point

Short idea (example):

• A stop could be placed above the high
• They mention “20 points” in that scenario

However:

• They emphasize you can’t be certain price will react specifically to the rejection block versus other zones (e.g., an order block)
• So stop sizing should be based on what you’re willing to risk

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Timeframes Mentioned

The approach is said to work across:

• 15-second
• 1-hour
• 4-hour

It’s also used during pre-market.

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Change in State of Delivery (Trigger Concept)

If there’s a change in state of delivery, price may:

• Go back down to the rejection block
• Then the speaker takes the entry

This is positioned as a way to time the retest and entry.

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Stop-Loss / Entry Positioning Rules (As Stated)

Stop placement

• Typically below the wick that formed the rejection block
• Caution: for very large rejection blocks, stops may become impractically wide
  • example given: an “80-point stop” is unrealistic

Entry options

• Enter near CE
• Enter at the 50% (mentioned as an option)
• Enter at the beginning of the wick if you want a more certain fill

Trade selection depends on whether risk becomes too large—i.e., choose the level that keeps the stop reasonable.

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Step-by-Step Framework (Compiled)

1. Identify a rejection block
   • after a liquidity sweep (e.g., taking highs)
   • followed by a large rejection wick
2. Mark relevant levels
   • start of the wick
   • CE (when referenced)
   • fib-based 0.62–0.79 zone (golden pocket / OTE) if applicable
3. Wait for price action
   • to tap/retest the POI / PD array / area of interest
   • specifically retest the rejection block
4. Confirm using context
   • speaker example: change in state of delivery
5. Enter
   • at the beginning of the wick (for higher fill certainty), or
   • at CE / 50% (to better control risk)
6. Place stop
   • below the wick
   • avoid stops that are too wide

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Numbers and Explicit Cautions / Recommendations

• Fib window: 0.62 to 0.79 (golden pocket / OTE)
• Example stop size: 20 points (in the described short example)
• Caution: very large rejection blocks may require impractically wide stops
  • example: “80-point stop”
• Recommendation: only take entries where risk is acceptable and the rejection block aligns with POI / PD array / engineered liquidity.

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Disclosures

• No explicit “not financial advice” disclaimer appears in the provided subtitles.

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Tickers / Assets Mentioned

• None mentioned.

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Presenters / Sources Referenced

• An ICT video (mentioned as a link source)
• “the guy who said…” (no name given)
• A general reference to “someone else” for the idea “the best trade is the scariest trade” (name not provided)