Acceptance and rejection

Trader's Glossary · Profile and auction

Definition. Acceptance is when the market stays at a new price level and builds volume there. Rejection is a quick return from the new level on low volume.

How it works

The market is an auction searching for a price that satisfies both sides. When price leaves the existing value area, the market “asks” whether the new prices are acceptable. The answer shows up in time and volume.

Example

Price breaks above the previous day's high. If it trades above for a sustained period and volume builds there, we call it acceptance. If it quickly falls back below, we call it rejection.

What to watch out for

A mere touch of a level settles nothing. Acceptance or rejection is shown by how price behaves over the following minutes and by order flow.

More in Hetman Capital Club

You'll find the full explanation with graphics, examples and exercises in the 🖥️ Order flow atlas space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).

Educational content, not investment advice.