- 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
- 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 |
| 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
