The rejection setup I used on AAPL last week (80% win rate)

I spotted something unusual during last week's market action that led to a quick, profitable trade.

While the broader market was trying to bounce, Apple (AAPL) was showing unusual weakness.

"Market looks weak but Apple looks even weaker," I told our trading room members.

This is exactly the kind of divergence I look for when hunting for high-probability setups - what I call the "rejection setup" that's been part of my 82% win rate trading approach.

Here's exactly what happened:

Apple had been consolidating that morning and then broke down from its range. It bounced weakly back to VWAP (Volume Weighted Average Price) and then formed a lower high around $217 - a significant prior support level now acting as resistance.

The 9 EMA (exponential moving average) aligned perfectly with this resistance zone, creating what I call a "rejection zone."

When I saw this constellation of signals, I entered a PUT position at $2.10, with a clear plan:

"Looking for a retest around 217... main risk is just that we don't get the retest," I explained to our members.

My stop was set just above the 9 EMA - about a 5-10% potential loss if I was wrong.

But the trade played out exactly as anticipated:

• First trim: $2.20 (joining the offer at resistance)
• Second trim: $2.30 (as momentum accelerated)
• Final portion: Looking for a potential test of the day's low

As Apple continued lower, I explained what was happening…

"You can see it... just perfect breakdown, retest, continuation breakdown."

What made this setup so powerful was the bearish "H pattern" forming on the chart. 

This pattern—a lower high followed by a lower low—is one of the most reliable signals for continuation moves… 

While Apple didn't ultimately reach the low of the day, we were still able to secure profits by trimming in thirds and moving our stops.

The key insight wasn't just the technical pattern - it was recognizing how the stock was behaving relative to the market.

This divergence between market strength and individual stock weakness is a powerful signal that institutions are distributing shares - creating an opportunity for alert traders to profit.

Most retail traders miss these signals because they're focused on lagging indicators or caught up in the FOMO of momentum trading.

But by learning to spot these rejection setups - especially when a stock shows relative weakness to the broader market - you can position yourself with smart money rather than against it.

Tomorrow, I'll share another core setup in my trading arsenal - the BRB pattern (Breakout, Retest, Bounce) that forms the foundation of my approach and has delivered consistent profits across all market conditions.

This pattern works in both bullish and bearish environments and complements the rejection setup perfectly.

And if you haven’t seen it yet…

On  March 25th, I'll be opening limited access to the complete Adaptive Trading Approach making it more accessible than ever before.

If you feel like your trading has plateaued, I highly suggest you secure your spot on the waitlist before it’s too late.

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That’s All,

Team Theta Warrior