The Rejection Strategy Binary Options

Today I just wanted to share with you one of the price action strategies I truly love, I like to call it “The Rejection”. Essentially what we are looking for in this particular strategy and example is a drop in price after heavy upward momentum in which a bar breaks and closes below the last green bar.

Once this occurs we wait for a pullback and for price to get rejected at the start of the candle which was had shifted the momentum by closing below the last green bar.

Once we see that three green 15 minute bars were rejected around that area, the 4th bar we would be taking a PUT immediately as soon as the candle opens as this is our opportunity to get in at a high probability “DROP” area.

Let me know what you all think about this by leaving a comment below!

12 Responses to “The Rejection Strategy (15 Minute Candlesticks)”

  1. avatar
    Acuter - March 19th, 2012 at 6:52 PM

    Looks like the tried and true 1-2-3 strategy with a nice twist . Its also the letter M sloped downward, entering the trade at point 3.

    Also , similar to ” Trader Vic ” Sperandeo’s excellent ” 2 B Reversal ” pattern , which is based on a failed breakout .

    Can it be used on a low time frame like 1 minute ?

  2. avatar
    David - March 19th, 2012 at 7:19 PM

    Hi Acuter, thanks for your comments!

    Lower time frames like 1 minute I would be a little more worried but I think it should work. I’ve messed around with it on 5 minute and had excellent results as well though so you may want to check that out.

  3. avatar
    ep - March 19th, 2012 at 11:18 PM

    hi Dave, will it work if there are 2 rejection green candles?

  4. avatar
    David - March 20th, 2012 at 9:19 AM


    Often times 2 if you are looking to take the 3rd green candle as your entry you need to try to get in as high as possible. Meaning as far over that rejection line as possible, however in my opinion that is a great deal more risky, so to play it safer I would stick with waiting for the 3rd for confirmation.

  5. avatar
    twinqlez - March 20th, 2012 at 8:44 PM

    I love it, love it ok,ok I do not have a full grasp of what you are speaking of, but I would really like to know I have been doing research on binary options for a while now(about two weeks), it seems so easy which makes me weary of the ease of lost, please help I would like to get in the game but scared of losing at my first attempts; thanks

  6. avatar
    Acuter - March 20th, 2012 at 8:45 PM

    Hi David_

    Am I correct in assuming that some of the ” Spot ” buyers , at the three rejection points have had their stop loss prices hit , and noticing that they are on the wrong side , rush to join the sellers , thereby helping push the price down ?

  7. avatar
    tommbstone - March 20th, 2012 at 10:11 PM

    Is there a indicator for this?

  8. avatar
    ginx10k - March 21st, 2012 at 2:42 PM

    Tommbstone, there is an indicator, it’s called Urban Towers. Lol, if you really look at what UT is doing, its the almost the same strategy. 3 Higher Highs, Followed by a Candle Closing below the low of the previous LOW gives a DOWN Arrow.

    Very Nice Strategy to use without Indicator, though.

  9. avatar
    Tripack - March 23rd, 2012 at 10:44 PM

    Good one David !
    Am I right assuming that they would typically form after some extensive trend prediods (where MAs are clear and spaced) and that it goes inline with your rainbow strategy ?

  10. avatar
    The Rejection | - April 8th, 2012 at 8:37 PM

    […] Creator:David Website:Binary Options Daily […]

  11. avatar
    jusztotto - April 26th, 2012 at 2:33 PM

    Hi David,

    I am watching the chart today and I tried to use the strategy just in theory, but it doesn’t work for me. If you look at the red candle on EUR/USD today at 1:02 pm..based on the strategy it should go down, however it went up. Am I missing something there? Please let me know! In what percentage does it work usually for you?


  12. avatar
    jusztotto - April 26th, 2012 at 2:38 PM

    just saw, the same thing happened again, if you look at the red candle at 2:17pm…..any advice?

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