What is the resistance rejection pattern?
The resistance rejection is a bearish breakout pattern. Price reaches a level that has capped it before and is turned back from it once more.
How does the resistance rejection form?
Price reaches a level that has capped it before and is turned back from it once more.
How do you confirm a resistance rejection?
Rejection wicks at a known level mark where sellers are waiting. The level's history is more useful than the shape of the rejection bar.
When does the resistance rejection fail?
A level that has been tested repeatedly is being worn down; the rejection that looks like all the others is often the last one.
No chart pattern works every time. The examples on this page were chosen because they show the pattern clearly, and in real markets patterns fail often.
Practice on real charts
3 real examples of the resistance rejection, cut off where the pattern completed. Make your call, then see what happened.
The shaded area is a resistance rejection. Where did price go next?