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Trading Knowledge

Comprehensive trading and technical analysis knowledge. Covers K-line patterns, support/resistance, liquidity hunting, signal K, market maker behavior, funda...

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name: trading-knowledge description: Comprehensive trading and technical analysis knowledge. Covers K-line patterns, support/resistance, liquidity hunting, signal K, market maker behavior, fundamental vs technical analysis, and trading psychology. Use when user asks about trading concepts, chart patterns, technical analysis basics, or market structure.

Trading Knowledge - Complete Guide

1. K-Line (Candlestick) Basics

Structure

  • Open, High, Low, Close
  • Body (real body)
  • Shadows (wicks)

Types

  • Bullish (Yang): Close > Open
  • Bearish (Yin): Close < Open

2. Single Candle Patterns

Pattern Signal
Hammer Bullish reversal
Shooting Star Bearish reversal
Doji Neutral/indecision
Spinning Top Weak trend

3. Multi-Candle Patterns

Reversal Patterns

  • Engulfing: Bullish (buy) / Bearish (sell)
  • Morning Star: Strong bullish reversal
  • Evening Star: Strong bearish reversal

Continuation Patterns

  • Three White Soldiers: Strong uptrend
  • Three Black Crows: Strong downtrend

4. Classic Chart Patterns

Pattern Type
Double Top Bearish reversal
Double Bottom Bullish reversal
Head & Shoulders Bearish reversal
Inverse H&S Bullish reversal
Triangle Continuation
Flag Continuation
Cup and Handle Bullish continuation

5. Support & Resistance

What is S/R?

  • Support: Price level where buying pressure exceeds selling
  • Resistance: Price level where selling pressure exceeds buying

Types

  • Horizontal levels
  • Trendlines
  • Moving averages
  • Fibonacci levels

Rules

  • Test count = strength
  • Volume = validity
  • Broken support becomes resistance

6. Liquidity Hunting (Stop Hunt)

What is it?

Market makers/hedgers need liquidity to fill orders. They push price to hunt stop losses before reversal.

Pattern

  1. Price approaches liquidity pool
  2. Quick spike to grab stops
  3. Rapid reversal
  4. Continuation in original direction

How to Identify

  • Long wicks through levels
  • Quick rejection
  • High volume spike
  • Returns to previous range

7. Signal K

What is Signal K?

A reversal candlestick that forms at key support/resistance levels.

Characteristics

  • Must be at key level
  • Long shadow (wick)
  • Small body
  • Volume confirmation

Validity Check

Factor Strong Signal Weak Signal
Location Multiple tests Random
Wick >2x body <body
Body Small Large
Volume High Low
Confirmation Next candle reverses No confirmation

8. Market Maker Behavior

What they do

  • Provide liquidity
  • Capture spread
  • Hunt excess liquidity

Order Flow

  • Order book analysis
  • Iceberg orders
  • Order blocks

MM Strategies

  • Passive providing
  • Aggressive taking
  • Arbitrage
  • Liquidity accumulation

9. Fundamental vs Technical Analysis

Fundamental

  • Economic data
  • Project news
  • On-chain metrics
  • Macro conditions

Technical

  • Price action
  • Chart patterns
  • Indicators
  • Volume

Best Approach

Fundamental decides WHAT to buy/sell Technical decides WHEN to buy/sell


10. Volume Analysis

Volume-Price Relationship

Price Volume Signal
Up High Healthy
Up Low Divergence
Down High Panic sell
Down Low No conviction

Key Concepts

  • OBV (On Balance Volume)
  • Volume profile
  • Volume spikes
  • VWAP

11. Key Indicators Explained

RSI (Relative Strength Index)

  • Overbought: >70
  • Oversold: <30

MACD

  • Golden cross: bullish
  • Death cross: bearish
  • Divergence: reversal signal

Bollinger Bands

  • Mean reversion
  • Breakout signals

ATR (Average True Range)

  • Volatility measure
  • Position sizing

12. Trading Psychology

Common Mistakes

  • Overtrading
  • No stop loss
  • Revenge trading
  • FOMO

Discipline Rules

  • Wait for confirmation
  • Respect stop loss
  • Let profits run
  • Cut losses short

13. Market Structure

Trends

  • Higher highs = uptrend
  • Lower lows = downtrend
  • Consolidation = range

Key Levels

  • Swing highs/lows
  • Pivot points
  • Psychological levels
  • Liquidity zones

14. Common Trading Terms

Term Meaning
HODL Hold
FOMO Fear of Missing Out
Liquidity Order book depth
Slippage Price difference
Spread Bid-ask difference
Leverage Borrowed funds
Margin Collateral

Author: Lucifer (路西法) Created: 2026-03-05 Version: 1.0.0

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