Understanding the Rejection Candle

Alright, listen up. When you're looking at a chart, say daily or 4-hour, and you see a candle with a long wick that's rejected a key level – be it a prior support/resistance, a moving average, or even a Fibonacci retracement – that's often a significant signal. It tells you price tried to go one way, hit that level, and got slapped back. For example, if you see price push up to $AUD 0.1028, but then close much lower with a big upper wick, it means buyers tried to break that resistance but sellers stepped in hard. Conversely, a long lower wick near support (like $AUD 0.0911) shows buyers came in strong to defend the downside. It's not a standalone trade signal, never is, but it tells you where the battle lines are drawn and who's currently winning that specific skirmish. You then combine this with volume and other context.