Let’s make it simple
You see dark clouds and pack an umbrella. Then the clouds pass without rain. Your first idea was reasonable, but it was not a promise. Chart ideas need the same willingness to change.
Understand the idea
A long lower wick may tempt someone to expect a recovery. If later prices instead close lower, the recovery idea has not worked as expected. The book calls related situations reverse rejection. Here we treat that as a descriptive label.
Before looking ahead, write what would challenge your idea. For a paper exercise, that might be a later close below a chosen low or zone. The chosen condition must be stated in advance, not moved after every new candle.
A failed UP idea does not automatically become a good DOWN idea. Stepping aside is a separate option. Do not turn uncertainty into revenge trading or double the pretend position to make a loss disappear.
Read exact candle values
| Candle | Open | High | Low | Close |
|---|---|---|---|---|
| A | 11 | 13 | 8 | 12 |
| B | 12 | 12.5 | 6 | 7 |
A small worked example
Candle A reaches a low of 8 and closes at 12. A learner expects a bounce but writes: "A later close below 8 challenges my idea." Candle B closes at 7. The learner records that the condition occurred and pauses.
Your turn
Write a paper-only expectation and one condition that would challenge it. Ask a partner to reveal a new candle. Record whether the condition occurred without changing the original rule.
Compare your exercise with a model response
Any advance-written, measurable condition is acceptable. Record failure honestly rather than moving the condition.
Pause & think
Check your understanding
Write an answer, then compare it with the explanation. This is self-study, not an automatically graded test.
Compare all three answers to unlock the review button.
Fictional examples. Education only; no pattern guarantees a result. Course information