candlestick context decoder

The problem

Traders often fail by treating candlestick patterns as isolated signals rather than contextual data. Standard pattern recognition ignores market phase, leading to false signals during range rotations or late-stage exhaustion.

What it does

• Classifies candle behavior strictly as rejection, continuation, or exhaustion based on surrounding structure.
• Identifies liquidity sweeps and absorption events at key structural boundaries and session levels.
• Filters out "noise" candles that lack clear roles within the prevailing market phase.
• Defines precise price triggers and invalidation levels for every candle interpretation.

Why this beats prompting it yourself

Most LLMs default to generic "Hammer is bullish" textbook definitions that lead to poor trade execution. This skill forces a structural auction-market perspective, ensuring every candle is weighed against higher-timeframe trends and liquidity pools before a bias is formed.

Use cases

• Confirming breakout validity by distinguishing continuation from bull/bear traps.
• Spotting trend exhaustion near major supply or demand zones to avoid late entries.
• Identifying high-probability mean reversion setups at range extremes via rejection wicks.