Airbus Rejection Block — Strategy by Xiznit

By Xiznit

Performance Metrics

Description

**Airbus Rejection Block**The Airbus Rejection Block is a multi-instrument divergence strategy built around Smart Money Technique (SMT) divergence detection combined with a rejection block entry framework. The strategy identifies institutional manipulation signals by comparing price structure between two correlated futures instruments, then enters on a precise price reaction at the origin of the manipulation zone using an ATR-based trailing stop flip as the execution trigger.This strategy is designed for futures traders operating on the 5-minute timeframe. It is best suited for traders who understand market structure, liquidity concepts, and institutional order flow.---**HOW IT WORKS****Step 1 — SMT Divergence Detection**The strategy simultaneously monitors the chart instrument and a user-defined correlated symbol using pivot-based swing detection. A bullish SMT divergence is identified when the primary instrument makes a lower swing low while the correlated instrument holds above its prior swing low — a non-confirmation that signals institutional accumulation and a potential engineered liquidity sweep. A bearish SMT divergence is the mirror condition: the primary instrument makes a higher swing high while the correlated instrument fails to confirm, signaling distribution.**Step 2 — Rejection Block Formation**When an SMT divergence is confirmed, a Rejection Block is drawn at the sweep candle. The block spans from the candle's wick extreme to its close, capturing the price range where the manipulation originated. This zone represents the area where institutional orders are likely resting and where price is expected to return for a reaction.**Step 3 — Box Touch**No trade is taken at the moment of divergence. The strategy waits for price to retrace and make contact with the Rejection Block zone. Once price touches the box, the strategy arms itself for entry. There is no time limit on this retracement — the strategy remains armed as long as the box is valid (up to 250 bars from formation). Multiple touches do not reset the armed state.**Step 4 — ATR Trailing Stop Flip (Entry Trigger)**Once the box has been touched and the strategy is armed, it waits for a fresh flip of the ATR-based trailing stop in the direction of the trade. For longs, this means the trailing stop transitions from bearish (red) to bullish (green). For shorts, the opposite. This flip must be a fresh transition — not simply being in the correct state — confirming that momentum has shifted in the direction of the trade.**Step 5 — Entry**On a confirmed ATR flip, a stop order is placed one tick above the flip candle's high (for longs) or one tick below the flip candle's low (for shorts). This ensures price is moving in the intended direction before the position is opened.**Step 6 — Stop Loss & Take Profit**The stop loss is placed below the Rejection Block low (for longs) or above the Rejection Block high (for shorts), with a user-defined tick buffer. The take profit is calculated from the actual fill price using the user-defined R:R ratio, defaulting to 1:1.**Invalidation**If price wicks through the Rejection Block extreme (below the box low for longs, above the box high for shorts) before the entry stop order triggers, the setup is immediately invalidated. The box is visually greyed out and the armed state is cleared. No trade is taken.**Box Expiry**Rejection Blocks automatically expire after 250 bars from formation to prevent stale zones from generating signals in irrelevant market conditions.---**SESSION FILTERS**The strategy includes three independently toggleable session filters. Only signals generated during active sessions will produce entries. All times are in New York time.- **Asia Session** — Default off. Covers 5:00 PM – 12:00 AM ET- **London Session** — Default off. Covers 2:00 AM – 8:30 AM ET- **NY Session** — Default on. Covers 8:30 AM – 4:00 PM ET---**EOD & WEEKEND PROTECTION**- **EOD Flatten** — Automatically closes any open position at a user-defined time each day to prevent holding through the close. Default is 4:00 PM CT. Time is fully adjustable.- **Weekend Gap Protection** — Automatically closes any open position on Friday at a user-defined time to prevent exposure over the weekend gap. Default is 3:55 PM CT. Time is fully adjustable.---**SETTINGS REFERENCE***SMT Divergence*- **Correlated Symbol** — The secondary instrument used for divergence comparison. Default is MES1! when trading MNQ. Change to the appropriate correlated instrument for your market.- **Pivot Lookback Length** — Number of bars used to confirm swing highs and lows on both instruments. Lower values confirm pivots faster but may produce more noise. Higher values are slower but more selective. Default is 3.*ATR Trailing Stop (Entry Trigger)*- **ATR Length** — The lookback period for the Average True Range calculation used in the trailing stop. Default is 10.- **ATR Multiplier** — The multiplier applied to ATR to determine the trailing stop distance. Increase to make the trailing stop looser and less sensitive to flips. Decrease for a tighter, more responsive trigger. Default is 2.0. Tune these two settings visually against your preferred trailing stop indicator to match its behavior.*Stop Loss & Target*- **Stop Buffer (Ticks)** — The number of ticks added beyond the Rejection Block extreme for stop loss placement. Provides a small buffer against stop hunting at the exact box level. Default is 2 ticks.- **R:R Ratio** — The risk-to-reward ratio used to calculate the take profit level from the actual fill price. A value of 1.0 targets 1:1, 2.0 targets 1:2, and so on. Default is 1.0.*Session Filters*- **Asia Session** — Toggle to enable signals during the Asia session. Adjust the session time to match your preferred hours.- **London Session** — Toggle to enable signals during the London session. Adjust the session time to match your preferred hours.- **NY Session** — Toggle to enable signals during the New York session. Default on. Adjust the session time to match your preferred hours.*EOD & Weekend Protection*- **EOD Flatten** — Toggle end of day position closure on or off. Set the time to match your preferred daily cutoff in exchange timezone.- **Weekend Gap Protection** — Toggle Friday position closure on or off. Set the time to your preferred Friday exit time in exchange timezone.*Visuals*- **Bullish Box Color** — Color of active bullish Rejection Blocks.- **Bearish Box Color** — Color of active bearish Rejection Blocks.- **Show ATR Trailing Stop** — Toggle visibility of the ATR trailing stop line on the chart. Useful for tuning the ATR settings to match your preferred execution trigger indicator.---**RECOMMENDED SETUP**1. Apply the strategy to MNQ1! or your preferred futures instrument on the 5-minute timeframe2. Set the Correlated Symbol to the appropriate paired instrument (MES1! for MNQ, MNQ1! for MES)3. Enable the sessions relevant to your trading schedule4. Tune the ATR Length and Multiplier settings until the trailing stop line visually matches your preferred trailing stop indicator5. Set your EOD and Weekend flatten times to match your risk management rules6. Configure your automation webhook with two order name listeners: entry orders and exit orders---**IMPORTANT NOTES**- This strategy is designed for the 5-minute timeframe. Results on other timeframes will vary, and settings may require adjustment- The strategy does not repaint. Pivot confirmation requires the lookback length to complete on both sides, meaning signals are confirmed and non-repainting by design- Backtesting results are influenced heavily by the ATR settings. Tune these carefully before deploying live- Always validate strategy behavior on your specific instrument before using in a live environment- Past performance is not indicative of future results. This tool is for educational and analytical purposes- All credit for this strategy goes to Airbus on Discord.

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