1 Entry Behavior
When Key Level Rejection is active, entry is taken only after failure is visible. Execution begins once effort has appeared and acceptance has clearly failed. The entry occurs on the rejection or failed retest, not on first contact with the level. The focus is on:
- Failed acceptance beyond a known level
- Loss of participation following the attempt
- Price responding away from the level with intent
Entry is deliberate and reactive. Once failure is confirmed, execution proceeds without hesitation.
2 Invalidation and Early Exit
The trade remains active only while rejection remains intact. Invalidation occurs when:
- Acceptance forms beyond the level
- Participation resumes in the direction of the original attempt
- Price holds beyond the rejection zone
When acceptance appears, the trade is exited immediately. The failure thesis no longer applies.
3 Scratch Discipline
When rejection does not produce follow-through, the trade is scratched. A scratch occurs when:
- Price fails to move away from the level
- Participation stalls after entry
- The market re-enters balance near the rejection zone
Scratching preserves alignment with the premise and prevents overstaying unresolved conditions.
4 Trade Management Posture
When rejection expands, the trade is managed with restraint. Management prioritizes:
- Staying aligned with the rejection direction
- Allowing trapped inventory to unwind naturally
- Avoiding premature exits during healthy expansion
The objective is to remain responsive while allowing reversal dynamics to play out.
5 Re-engagement Logic
Re-entry is permitted only if the rejection thesis remains intact and a new failure appears. Re-engagement occurs only when:
- The level is retested and fails again
- Acceptance continues to be rejected
- Participation aligns with reversal intent
Each entry is independent. Re-engagement follows the same execution logic as the initial trade.
Closing Note
Key Level Rejection works because most failed attempts do not quietly resolve. When effort fails and acceptance does not follow, trapped participants must reposition. That repositioning creates movement away from the level.
The sequence is simple.
Observe the attempt. Wait for failure. Enter on rejection. Exit when acceptance forms.
When rejection holds, reversal is the best explanation. When acceptance appears, the trade no longer exists. Clarity at this stage removes hesitation and supports consistency.