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
- Price approaches liquidity pool
- Quick spike to grab stops
- Rapid reversal
- 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 | 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