Global FX Technical Architecture • Module 2

Forex Candlestick Architecture & Liquidity Runs

Master 51 candlestick formations in the $7.5T/day interbank foreign exchange market. Execute with session-specific liquidity sweeps, pip-precision invalidations, and central bank order-flow context.

Interactive LabPattern Simulator v2.4

Tactical Candlestick Simulator & Order-Flow Inspector

Inspect real price action dynamics, confirmed entry triggers, and stop-loss invalidation zones.

Timeframe:15m - 4h
TAKE PROFIT TARGETBREAKOUT ENTRY TRIGGERSTOP LOSS INVALIDATIONTrend SellExhaustionHammer (Rejection)ConfirmationExpansion
Est. Win Rate68%
Average R:R1:2.4
StatusLearning
BULLISHSetup #hammer

Bullish Hammer

Sellers aggressively attempted to create new lows, but heavy spot and institutional limit orders absorbed the dump, forcing price back to open.

Execution Rules

Entry Trigger:Breakout above Hammer high on next candle close
Invalidation / Stop Loss:Below lower shadow wick (tail rejection)
Take Profit Objective:Next overhead resistance / liquidity pool

Smart Money / Liquidity Trap Note

Retail traders who shorted the breakdown get caught off-guard as their buy stops accelerate the ensuing rally.

0 / 51 Mastered

Interbank FX Candlestick Architecture

Decoding session overlaps, spread expansion, and sovereign dealer liquidity

London Session Liquidity Sweep (Bullish Reversal)

Judas Swing

Price dips below the Asian session low between 07:00 and 08:30 GMT to trigger retail sell-stops before London banks buy wholesale liquidity, printing a long rejection wick (Hammer).

New York Overlap Distribution (Bearish Reversal)

Macro Surprise

Price spikes into previous daily highs ahead of US CPI or FOMC announcements, sweeps buy-side liquidity, and violently reverses to close deep in the red (Shooting Star / Bearish Engulfing).

Key Forex Candlestick Rules:

• Session Volume Weight: Candlestick patterns formed during the London/New York overlap (13:00 - 16:00 GMT) carry 3x more institutional validity than patterns formed during the quiet Asian session.

• Spread Buffer: In FX, broker bid/ask spreads widen before market close and during news releases. Always place stop-losses 3-5 pips beyond candlestick wick extremes.

• Currency Cross Correlation: Confirm EUR/USD candlestick signals against USDX (Dollar Index) and correlated pairs like GBP/USD before committing capital.

Candlestick Structure Breakdown

Comprehensive Pattern Breakdown

Displaying 51 institutional patterns across active filters.

Bullish Reversal68% WR

1. Hammer Pattern

Characterized by a small body near the top of the candle with a long lower shadow (at least 2x body height). Signals strong price rejection at key support.

1. Hammer Pattern
Bullish Reversal65% WR

2. Inverted Hammer Pattern

Appears at the bottom of a downtrend with a small lower body, long upper wick, and little to no lower wick.

2. Inverted Hammer Pattern
Bullish Reversal67% WR

3. Piercing Line Pattern

A two-candle reversal formation. A bearish candle followed by a candle opening lower but closing above the 50% midpoint of the prior candle.

3. Piercing Line Pattern
Bullish Reversal72% WR

4. Bullish Engulfing Pattern

A small red candle followed by a larger green candle whose real body completely engulfs the prior session's body.

4. Bullish Engulfing Pattern
Bullish Indecision / Pivot62% WR

5. Bullish Spinning Top

Compact body positioned symmetrically between long upper and lower shadows.

5. Bullish Spinning Top
Bullish Reversal74% WR

6. The Morning Star Pattern

A three-candle bottom formation: long red candle, small gapping star candle, and a strong third green candle.

6. The Morning Star Pattern
Bullish Reversal / Momentum75% WR

7. Three White Soldiers

Three consecutive long-bodied green candles with short wicks, each opening inside the prior body and closing near highs.

7. Three White Soldiers
Bullish Reversal69% WR

8. Three Inside Up Pattern

A large red candle, a small green candle inside it, and a third candle closing above the first candle's high.

8. Three Inside Up Pattern
Bullish Reversal64% WR

9. Bullish Harami Pattern

A small green candle forms completely within the real body of the preceding large red candle.

9. Bullish Harami Pattern
Bullish Reversal66% WR

10. Tweezer Bottom Pattern

Two or more candles sharing the exact same low price point at an established support zone.

10. Tweezer Bottom Pattern
Bullish Reversal63% WR

11. Bullish Counterattack Pattern

A down candle followed by a gap-down open that rallies sharply to close at the prior day's close.

11. Bullish Counterattack Pattern
Strong Bullish Reversal78% WR

12. Bullish Kicker Pattern

A red candle followed immediately by an upward-gapping green candle that never looks back.

12. Bullish Kicker Pattern
Rare Bullish Reversal76% WR

13. Bullish Abandoned Baby

A long red candle, a doji gapping down with no shadow overlap, and a green candle gapping upward.

13. Bullish Abandoned Baby
Bullish Reversal73% WR

14. Morning Star Doji

Morning star variation featuring a doji as the pivot candle.

14. Morning Star Doji
Bullish Reversal67% WR

15. Dragonfly Doji Pattern

Open, high, and close are equal at the top with an exceptionally long lower shadow.

15. Dragonfly Doji Pattern
Bullish Reversal65% WR

16. Bullish Tri-Star Pattern

Three consecutive dojis appearing at market bottoms, with the middle doji marking the low.

16. Bullish Tri-Star Pattern
Bullish Trap & Reversal70% WR

17. Bullish Hikkake Pattern

An inside bar breaks down falsely before reversing violently upward to trap sellers.

17. Bullish Hikkake Pattern
Bullish Reversal72% WR

18. Concealing Baby Swallow

A rare 4-candle bottom formation signaling severe seller depletion.

18. Concealing Baby Swallow
Bullish Reversal66% WR

19. Unique Three Rivers Pattern

A long down candle, a lower-shadow hammer, and a small green stabilizing candle.

19. Unique Three Rivers Pattern
Bearish Reversal66% WR

20. Hanging Man Pattern

Appears at the peak of an uptrend with a small body at the top and a long lower tail.

20. Hanging Man Pattern
Bearish Reversal69% WR

21. Dark Cloud Cover Pattern

A strong bullish candle followed by a candle opening higher but closing below the 50% midpoint.

21. Dark Cloud Cover Pattern
Bearish Reversal73% WR

22. Bearish Engulfing Pattern

A green candle followed by a larger red candle whose body completely engulfs the prior candle.

22. Bearish Engulfing Pattern
Bearish Reversal75% WR

23. The Evening Star Pattern

A three-candle top formation: long green candle, an isolated star, and a heavy third red candle.

23. The Evening Star Pattern
Strong Bearish Reversal76% WR

24. Three Black Crows Pattern

Three consecutive long-bodied red candles closing at or near lows.

24. Three Black Crows Pattern
Bearish Reversal68% WR

25. Three Inside Down Pattern

A tall green candle, a small red candle inside it, and a third red candle closing below candle one.

25. Three Inside Down Pattern
Bearish Reversal63% WR

26. Bearish Harami Pattern

A small red candle contained inside the large preceding green candle.

26. Bearish Harami Pattern
Bearish Reversal70% WR

27. Shooting Star Pattern

Small lower body with a long upper wick (2x+ body length) and little to no lower wick.

27. Shooting Star Pattern
Bearish Reversal67% WR

28. Tweezer Top Pattern

Two or more candles sharing the exact same high price point at an established resistance level.

28. Tweezer Top Pattern
Bearish Reversal64% WR

29. Bearish Counterattack Pattern

A gap up is immediately countered by an aggressive selloff that closes at the prior day's close.

29. Bearish Counterattack Pattern
Bearish Indecision / Exhaustion61% WR

30. Bearish Spinning Top

Symmetric long wicks with a tight body following an extended rally.

30. Bearish Spinning Top
Strong Bearish Reversal79% WR

31. Bearish Kicker Pattern

A bullish candle followed immediately by a downward-gapping red candle that plunges lower.

31. Bearish Kicker Pattern
Bearish Reversal74% WR

32. Evening Star Doji Pattern

An evening star whose middle candle is a Doji.

32. Evening Star Doji Pattern
Rare Bearish Reversal77% WR

33. Bearish Abandoned Baby

A green candle, an isolated doji gapping up with no shadow overlap, and a red candle plunging down.

33. Bearish Abandoned Baby
Bearish Reversal68% WR

34. Gravestone Doji Pattern

Open and close are at the low of the session with an exceptionally long upper shadow.

34. Gravestone Doji Pattern
Bearish Reversal66% WR

35. Bearish Tri-Star Pattern

Three consecutive Dojis at the summit of a bull market.

35. Bearish Tri-Star Pattern
Bearish Warning64% WR

36. Deliberation Pattern

Three green candles where the first two are expansive and the third shrinks into a tiny body.

36. Deliberation Pattern
Bearish Reversal67% WR

37. Upside Gap Two Crows

A rare bearish reversal formation during an extended uptrend.

37. Upside Gap Two Crows
Bearish Warning65% WR

38. Advance Block Pattern

Three advancing green candles with progressively smaller real bodies and longer upper wicks.

38. Advance Block Pattern
Bearish Continuation72% WR

39. Falling Three Methods

A long red candle, three small green consolidation candles, and a heavy fifth breakdown candle.

39. Falling Three Methods
Bullish Continuation74% WR

40. Rising Three Methods

A long green candle, three small red consolidation candles, and a strong fifth breakout candle.

40. Rising Three Methods
Bullish Continuation68% WR

41. Upside Tasuki Gap

In an uptrend, a green candle gaps up, followed by a red candle that tests the gap without closing it.

41. Upside Tasuki Gap
Bearish Continuation69% WR

42. Downside Tasuki Gap

In a downtrend, a red candle gaps down, followed by a green candle that retraces into the gap without filling it.

42. Downside Tasuki Gap
Bullish Continuation73% WR

43. Rising Window Pattern

A price gap between two green candles with no overlapping shadows.

43. Rising Window Pattern
Bearish Continuation74% WR

44. Falling Window Pattern

A downward price gap between two consecutive red candles.

44. Falling Window Pattern
Bullish Continuation71% WR

45. Three Outside Up Pattern

A bullish engulfing pattern followed by a third green candle closing higher.

45. Three Outside Up Pattern
Bearish Continuation72% WR

46. Three Outside Down

A bearish engulfing pattern followed by a third red candle closing lower.

46. Three Outside Down
Strong Bullish Momentum77% WR

47. White Marubozu Pattern

A long green candle with zero wicks.

47. White Marubozu Pattern
Strong Bearish Momentum78% WR

48. Black Marubozu Pattern

A long red candle with zero wicks.

48. Black Marubozu Pattern
Bearish Continuation66% WR

49. On-Neck Pattern

In a downtrend, a red candle is followed by a green candle that only closes at the prior candle low.

49. On-Neck Pattern
Bullish Continuation76% WR

50. Mat-Hold Pattern

Similar to rising three methods, but the reaction starts with an upward gap.

50. Mat-Hold Pattern
High Volatility Indecision63% WR

51. Long Legged Doji

Features long shadows in both directions with open and close identical in the center.

51. Long Legged Doji

Forex Execution Realities & Liquidity Caveats

Navigating high-spread rollovers, news slippage, and FEMA compliance

5 PM EST Rollover Spread Widening

During the daily bank rollover at 17:00 EST (21:00 GMT), liquidity plummets and spreads on major pairs can widen from 0.8 pips to 10+ pips. Avoid placing tight stops during this 30-minute window.

High-Impact Tier-1 News Slippage

During Non-Farm Payrolls (NFP) and FOMC interest rate announcements, stop-loss orders can slip substantially. Never trade isolated candlestick patterns inside the 5 minutes surrounding high-impact events.

Central Bank Intervention Zones

When trading currency pairs like USD/JPY near sovereign defense levels (e.g., 155-160), Ministry of Finance intervention can trigger 400-pip candles within seconds, ignoring candlestick patterns.

Indian Regulatory Framework (FEMA)

Under RBI and FEMA regulations, Indian residents are permitted to trade currency derivatives only on designated Indian exchanges (NSE/BSE) on approved pairs (USDINR, EURINR, GBPINR, JPYINR).