# Trading Knowledge

> 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.

- Skill: `dvcrn/trading-knowledge` (Agent Skill, multi-file: 3 files)
- Install (CLI): `npx skillmds@latest add dvcrn/trading-knowledge`
- Raw SKILL.md: https://api.skillmd.com/api/skills/dvcrn/trading-knowledge/raw
- Safety review: pending (external: skill-scanner PASS, skillspector PASS)
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: dvcrn (https://skillmd.com/u/dvcrn)
- Updated: 2026-09-08
- Page: https://skillmd.com/skills/dvcrn/trading-knowledge

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# 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 |

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