Video summary

Powell Trades | Rejection Wicks Dumb Money Concepts

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Key takeaways

Finance

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.

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.

“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)

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.

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.

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

Timeframes Mentioned

The approach is said to work across:

  • 15-second
  • 1-hour
  • 4-hour

It’s also used during pre-market.

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.

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.

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

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.

Disclosures

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

Tickers / Assets Mentioned

  • None mentioned.

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)

Original video