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 to spot a resistance rejection
- 1Mark a level where price has turned down before.
- 2Watch price come back up to it.
- 3A rejection is a turn down from the level without a close above it.
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?
Resistance Rejection: common questions
Is the resistance rejection bullish or bearish?
The resistance rejection is bearish. Rejection wicks at a known level mark where the sellers are waiting.
How do you spot a resistance rejection?
Mark a level where price has turned down before. Watch price come back up to it. A rejection is a turn down from the level without a close above it.
What is the difference between the resistance rejection and the support bounce?
The resistance rejection: Price reaches a level that has capped it before and is turned back from it once more. The support bounce: Price returns to a level that has held before and turns away from it again.
How reliable is the resistance rejection?
No chart pattern works every time. A level that has been tested repeatedly is being worn down; the rejection that looks like all the others is often the last one. That is why it helps to wait for confirmation and to practice on many real examples before relying on it.
How can I practice spotting the resistance rejection?
Use the real charts on this page: each one stops where the resistance rejection completed, so you can make a call and then see what happened. The free Chartle app mixes the resistance rejection in with 48 other patterns in short daily sessions.
Keep learning
- Chart pattern gameGuess where price goes next on real charts, all 49 patterns mixed.
- All 49 chart patternsEvery bullish and bearish pattern, with a printable cheat sheet.
- How to read candlestick chartsBodies, wicks and colors explained from the start.
- Cheat sheet PDFAll patterns on two printable pages.
