Golden Rejection Candle Strategy–Catch Explosive Intraday Moves!

Hello Trader!
Are you tired of buying options and watching premiums die slowly?
Or chasing breakouts that reverse the moment you enter?

Here’s your solution – the Golden Rejection Candle Strategy, designed especially for option buyers who want timed entries, fast momentum, and defined risk.

What is a Golden Rejection Candle?
A special candlestick that forms when price hits a strong level (like VWAP, trendline, or demand/supply zone) and gets instantly rejected.
It leaves behind a long wick (shadow), showing that buyers or sellers stepped in with force.
This candle often marks the start of a sharp intraday reversal.

It's not just a random wick — it’s a smart money footprint.

Live Chart Example – Nifty Spot vs Option Premium (23950 CE)

Date: 9th May 2025
Timeframe: 1 min (Spot), 1 min (Options)

• Spot Chart Setup: Nifty approached a marked green support zone and created a strong wick rejection with a small body candle — classic sign of buyers defending the level.
  
  
• Confirmation Candle: The next candle broke above the rejection candle’s high, confirming the reversal setup.
  
  
• Premium Reaction: On the 1-min ATM Option chart (23950 CE), premiums jumped from 270 to 344 – a clean 26% gain within few minutes.
  
  
• Risk-Reward Snapshot: Entry was at breakout, SL just below rejection wick, and target hit in a single momentum burst — the kind of move option buyers live for.
  

How to Trade It as an Option Buyer

• Choose the Right Strike: Use ATM or slightly ITM options to get faster movement when price reverses.
  
  
• Entry Strategy: Wait for the next candle to break the rejection candle’s high/low. No break = No trade.
  
  
• SL Placement: Keep it just beyond the wick. Small loss if wrong, big reward if right.
  
  
• Exit Plan: Aim for intraday resistance/support or spike-based exits — option premiums often give quick moves post-rejection.
  

What NOT to Do:

• Don’t enter on the rejection candle itself — wait for confirmation.
  
  
• Avoid trading this pattern in low volume or middle of the range.
  
  
• Don’t hold blindly — if premium spikes, take the money and run!
  

Rahul’s Tip:
“Sudden reversals are where option buyers make money — not slow trends. The rejection candle shows intent. The breakout shows confirmation. Combine both.”

Conclusion:
The Golden Rejection Candle Strategy gives you an edge that most random trades lack — timing, context, and structure.

If you're an option buyer, this can be your go-to setup to avoid traps and enter only when smart money steps in.
No more guessing. No more fear.

Just clean, price-action-based entries that make sense.

👇 Have you ever used rejection-based setups? Drop your favorite trade below! Let’s learn together.

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