Ict Rejection Block Calculator
Identify rejection blocks (wicks into FVGs) for ICT-based trade entry signals. Enter values for instant results with step-by-step formulas.
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The rejection block zone spans from the candle body edge to the wick extreme. Entry is typically at the 50% level of this zone. Stop loss is placed beyond the wick extreme with a 10% buffer of the candle range.
Last reviewed: December 2025
Worked Examples
Example 1: Bullish Rejection Block with FVG Overlap
Example 2: Bearish Rejection Block on 1-Hour Chart
Background & Theory
The Ict Rejection Block Calculator applies the following established principles and formulas. Foreign exchange markets facilitate the conversion of one currency into another and serve as the largest and most liquid financial markets in the world, with daily turnover exceeding seven trillion US dollars. Exchange rates are quoted as currency pairs, expressing the price of one unit of a base currency in terms of a quote currency. For example, a EUR/USD rate of 1.0850 means one euro buys 1.0850 US dollars. The smallest standardized price movement in most pairs is the pip, typically the fourth decimal place, with a value of 0.0001 per unit for USD-denominated pairs. The bid price is the rate at which a dealer will buy the base currency, while the ask price is the rate at which it will sell. The spread between bid and ask represents the dealer's compensation and varies with liquidity and volatility. Leverage amplifies both gains and losses by allowing traders to control positions larger than their deposited margin. A 100:1 leverage ratio means a one-percent adverse move eliminates the entire margin, making position sizing and risk management critical. Two parity conditions from international economics anchor exchange rate theory. Purchasing Power Parity (PPP) holds that exchange rates should adjust over time so that identical goods trade at equivalent prices across countries: S = P_d / P_f, where S is the spot rate and P_d and P_f are domestic and foreign price levels. PPP performs well over long horizons but poorly in the short run due to trade barriers, non-tradable goods, and capital flows. Covered Interest Rate Parity (CIRP) is a near-arbitrage condition stating that forward exchange rate premiums or discounts exactly offset interest rate differentials between two currencies: F/S = (1 + r_d) / (1 + r_f). Deviations from CIRP create riskless arbitrage opportunities that traders rapidly eliminate. Uncovered Interest Rate Parity posits that high-yielding currencies should depreciate to offset their interest advantage, though empirical evidence is mixed and the carry trade — borrowing in low-rate currencies to invest in high-rate ones — has generated persistent returns.
History
The history behind the Ict Rejection Block Calculator traces back through the following developments. For much of the nineteenth century and early twentieth century, the international monetary system operated under the classical gold standard, under which each participating currency was fixed to a defined weight of gold, making bilateral exchange rates effectively constant. The system provided price stability and facilitated global trade but constrained governments' ability to respond to economic downturns. World War One shattered the gold standard as nations suspended convertibility to finance wartime expenditures. The interwar period saw attempts to restore gold convertibility, most notably the British return to the gold standard in 1925 at the pre-war parity, a decision criticized by John Maynard Keynes as deflationary. The Great Depression forced widespread currency devaluations and the effective collapse of the international gold standard by the early 1930s. The Bretton Woods Conference of July 1944 established a new order in which member currencies were pegged to the US dollar, while the dollar alone was convertible into gold at 35 dollars per troy ounce. The International Monetary Fund and World Bank were created at the same conference to oversee the system. Bretton Woods delivered exchange rate stability during the postwar growth era but came under strain as US deficits and European dollar accumulation outpaced American gold reserves. On August 15, 1971, President Nixon announced the suspension of dollar-gold convertibility — the so-called Nixon Shock — effectively ending the Bretton Woods system. By 1973, major currencies had transitioned to floating exchange rates determined by market supply and demand, a regime that has persisted. On September 16, 1992, hedge fund manager George Soros shorted the British pound against the European Exchange Rate Mechanism constraints, forcing the UK's withdrawal in what became known as Black Wednesday. Electronic trading platforms emerged in the 1990s and 2000s, replacing voice-brokered interbank markets and dramatically reducing transaction costs for institutional and retail participants alike.
Frequently Asked Questions
Formula
Rejection Zone = Candle Body to Wick Extreme | Entry = 50% of Zone | SL = Beyond Wick + Buffer
The rejection block zone spans from the candle body edge to the wick extreme. Entry is typically at the 50% level of this zone. Stop loss is placed beyond the wick extreme with a 10% buffer of the candle range.
Worked Examples
Example 1: Bullish Rejection Block with FVG Overlap
Problem: A 15-minute candle on EUR/USD: Open 1.1020, Close 1.1025, High 1.1055, Low 1.1015. A bullish FVG exists from 1.1035-1.1050. Current price is 1.1022. Analyze the rejection block.
Solution: Total range: 40 pips (1.1015 - 1.1055)\nBody: 5 pips (12.5% of range) - small body = strong rejection\nLower wick: 5 pips (12.5%) | Upper wick: 30 pips (75%)\nWait - this is upper wick dominant, not lower wick\nRe-analyze: Upper wick into FVG? High 1.1055 > FVG Low 1.1035 = Yes\nBut candle is bullish, upper wick means bearish rejection from FVG\nRejection zone: 1.1025 - 1.1055
Result: Potential bearish rejection from FVG | Entry: 1.1040 | SL: 1.1059 | TP: 1.1015
Example 2: Bearish Rejection Block on 1-Hour Chart
Problem: GBP/USD 1H candle: Open 1.2780, Close 1.2770, High 1.2820, Low 1.2765. FVG zone 1.2800-1.2815. Current price 1.2790.
Solution: Total range: 55 pips\nBody: 10 pips (18.2%) - very small = strong rejection\nUpper wick: 40 pips (72.7%) - dominant rejection wick\nLower wick: 5 pips (9.1%)\nHigh 1.2820 penetrates FVG (1.2800-1.2815) = confirmed overlap\nBearish rejection block: Zone 1.2780-1.2820\nEntry: 1.2800 (midpoint) | SL: 1.2826 | TP1: 1.2765 | TP2: 1.2738
Result: Bearish Rejection Block | Entry: 1.2800 | Risk: 26 pips | R:R TP1: 1.35:1 | TP2: 2.38:1
Frequently Asked Questions
What is an ICT Rejection Block and how does it form?
An ICT Rejection Block is a specific candlestick pattern where a long wick penetrates into a fair value gap (FVG) or key level and then quickly reverses, creating a zone of institutional rejection. The rejection block forms when price extends beyond a candle body into an area of interest, collects liquidity, and then closes back within the range, leaving a prominent wick. The body of the rejection candle represents the rejection zone, which acts as a future support or resistance area where institutional orders are likely resting. A bullish rejection block features a long lower wick that penetrates below and a close near the high, while a bearish rejection block shows a long upper wick with a close near the low.
How does a rejection block differ from a regular order block?
While both rejection blocks and order blocks are institutional reference levels, they form through different mechanisms and carry different implications. An order block is typically the last down-close candle before a bullish move or the last up-close candle before a bearish move, representing the candle where institutions established their positions. A rejection block, by contrast, specifically involves a candle with a prominent wick that penetrated into a fair value gap before rejecting, showing that institutions actively defended that price level. Order blocks tend to be more reliable for trend continuation entries, while rejection blocks signal strong rejection of a specific level and often indicate higher-conviction reversal points. Rejection blocks also tend to be respected more precisely because the wick represents an exact institutional reaction.
Why does the wick penetration into a fair value gap make the rejection block more significant?
When a wick penetrates into a fair value gap and then rejects, it confirms two ICT concepts simultaneously, creating a higher-probability trading level. First, the FVG represents an area of inefficient price delivery that the algorithm needs to revisit, confirming that institutional interest exists at that level. Second, the rejection wick shows that when the algorithm did deliver price to that area, it was immediately and forcefully rejected, indicating strong institutional defense. The combination means that institutions both intended to fill the FVG and used the fill as an opportunity to establish or add to positions. This dual confirmation makes rejection blocks with FVG overlap significantly more reliable than either pattern alone, often leading to strong directional moves after the rejection.
What wick-to-body ratio indicates a valid rejection block?
A valid rejection block typically requires the rejecting wick to constitute at least 40 percent of the total candle range, with higher percentages indicating stronger rejection. The ideal rejection block has a wick representing 60 to 70 percent of the total range, with the body comprising 30 percent or less. This extreme wick-to-body ratio demonstrates that price traveled significantly into the rejected area but was pushed back forcefully, indicating strong institutional opposition to that price level. A wick of less than 40 percent is generally considered a normal candle without sufficient rejection force to qualify as a rejection block. The body color should align with the direction of rejection, meaning a bullish rejection candle should close bullish and a bearish rejection candle should close bearish.
Where should the stop loss be placed when trading a rejection block?
Stop loss placement for rejection block trades should be positioned beyond the extreme of the rejecting wick, typically with a buffer of 5 to 15 pips depending on the timeframe and pair volatility. For a bullish rejection block, the stop loss goes below the candle low plus buffer. For a bearish rejection block, it goes above the candle high plus buffer. This placement is logical because if price exceeds the rejection wick extreme, it invalidates the premise that institutions defended that level, meaning the rejection has failed. Some traders use a tighter stop beyond the FVG boundary rather than the wick extreme, which improves the risk-to-reward ratio but increases the probability of being stopped out by minor liquidity sweeps before the expected move occurs.
What timeframes work best for identifying rejection blocks?
Rejection blocks are most reliable on the 15-minute and 1-hour timeframes, which balance sufficient detail to see wick formation clearly while filtering out the noise present on very low timeframes. The 15-minute chart is preferred for intraday trading because rejection blocks at this level often form during killzone transitions and produce moves lasting 2 to 4 hours. The 1-hour timeframe produces rejection blocks that drive price for 1 to 2 trading days. The 4-hour and daily timeframes generate the most powerful rejection blocks that can influence price for a full week or more, but they form less frequently. Lower timeframes like the 5-minute chart produce many rejection candle patterns, but the signal-to-noise ratio is poor, leading to many false signals that do not hold.
References
Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy