I’ve found that the biggest misconception many traders have is over-relying on various technical indicators and systems, constantly praying for master signals in live streams, only to get lost in a maze of tools. Actually, there’s a simpler and more direct method—naked K-line trading, which relies solely on price action to infer market direction.

The core of naked K-line trading is tracking price structure. It’s not about completely ignoring other tools, but rather viewing trend lines, support and resistance, Fibonacci retracements as part of the candlestick chart itself. The key is understanding that price structure is the true code for following the market.

Many people ask, why are support levels sometimes broken? Why does the price fluctuate so unpredictably? The answer lies in market structure. Market structure essentially connects all the highs and lows during price movement, forming a zigzag line that reveals what the market is really doing.

The first step in mastering naked K-line trading is identifying important support and resistance levels. These are often areas where bulls and bears fiercely battle, and where price may retrace. I recommend marking these on higher timeframes, such as hourly or daily charts. Besides obvious swing highs and lows, pay attention to psychological round numbers, key Fibonacci levels like 50% and 61.8%, and convergence zones of different support and resistance levels.

The second step is determining the trend direction. The market only moves in three ways: up, down, or sideways. An uptrend features gradually higher lows and higher highs, while a downtrend shows the opposite. Once you confirm the direction, you can set specific entry strategies.

But that’s not enough. The third step is crucial—understanding market psychology. This is usually reflected through price patterns and candlestick formations. Price patterns fall into two main categories: reversal patterns (head and shoulders, double tops/bottoms, V-shape) and continuation patterns (triangles, wedges, rectangles). Candlestick patterns also divide into reversal and continuation types, such as hammer, engulfing, and doji, which reveal the battle between buyers and sellers.

For example, I once analyzed a 1-hour chart of palm oil futures contract 2301. The price formed a double top and broke the neckline, which was a good signal. From the chart’s highs and lows on the left, the overall trend was upward, but the double top indicated a potential correction. Oscillating along the upward trendline showed buyers’ weakness, and once that structure was broken, sellers gained strength. The break of the neckline then became a sell signal, confirmed by a strong bearish candlestick.

Honestly, whether naked K-line trading can make money ultimately depends on the user. Even the best techniques require experience, psychological discipline, and deep market understanding. I myself track various assets on Gate using this method to continuously verify and improve it. The key is to keep learning, accumulate experience through practice, and only then can you achieve consistent profits.