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

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2. Single Candle Patterns

Pattern	Signal
Hammer	Bullish reversal
Shooting Star

Bearish reversal | | Doji | Neutral/indecision | | Spinning Top | Weak trend |

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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

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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 |

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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

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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. 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

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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 |

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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

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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

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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

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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

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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

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13. Market Structure

Trends

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

Key Levels

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

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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 |

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