1. Ultimate meaning of Naked K: **Three K-lines determine bull and bear**
Core logic:
All price fluctuations ultimately collapse into the game of three K-lines—
1. Attacking K (direction selection):
- Entity longer than the previous 5 K-lines, breaking through the volatile range → Main force reveals its sword
- If accompanied by decreasing volume → Probability of fake action +30%
2. Confirm K (trend verification):
- If the second K-line pulls back but does not break the 50% position of the attacking K → Trend credibility +50%
- If the pullback is too deep and with volume → Trap alert
3. Continuation K (chasing victory):
- Closing price breaks through the high point of the attacking K → Signal to increase positions
- If a long upper shadow appears → Take profit 50%
Violent mantra:
> 'One big Yang doesn't believe in evil, two pullbacks don't break half, three break highs and close your eyes to follow. If any link falls off, immediately pick up your bucket and run.'
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2. Reflexivity trap: **When the market begins to 'believe' in itself**
Core philosophy of Soros:
Market perception distorts reality, like drawing a self-portrait in front of a mirror—
- First stage (cognitive distortion):
Bitcoin rises because of 'institutional entry' → Institutional entry happens because Bitcoin rises
- Second stage (reality distortion):
Projects attract VC with explosive data → VC investment drives further explosive growth
- Third stage (collapse):
When everyone thinks 'this time is different', the underlying logic has long since rotted
Classic case dissection:
- Death spiral of algorithmic stablecoins:
Price falls → Arbitrageurs sell → Further decline (self-fulfilling death prophecy)
- NFT liquidity illusion:
Floor price stabilizes due to no one selling → No selling because it cannot be realized (liquidity black hole)
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🔑 Survival toolbox
1. Naked K three lines absolute kill method:
- In a volatile market, if three consecutive K-line highs/lows move up simultaneously → Trend sprout
- Immediately enter at the closing price of the third K-line, setting the stop-loss at the low point of the first K-line
2. Reflexivity tearing alarm:
- When the following signals appear, the market has entered self-destruct mode:
✅ Projects use market cap ranking to prove their value (rather than technological progress)
✅ The community uses 'increasing number of holding addresses' to cover declining trading volume
✅ KOLs begin to proclaim 'traditional finance is dead, crypto does not need to be profitable'
3. Soros escape route:
- When everyone shouts 'this time is different', short the most correlated leveraged tokens
- When rebounding to the 50% position of the previous high after a sharp drop, clear all speculative positions
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🌰 Real world mapping
- Naked K three lines vs boxing match:
Stabbing punch test (attacking K) → Swing punch charge (confirm K) → Hook punch KO (continuation K)
- Reflexivity vs internet celebrity restaurants:
Crowds queue because they believe it is delicious (cognition) → Merchants ignore dishes due to the queue (reality distortion) → When closed, no one admits it was bad (collapse)
- Algorithmic stablecoins vs perpetual motion machine:
Use results (stable coin price) to prove principles are feasible → Principle loopholes ultimately destroy results
（Note: Trading is not a science but a philosophy; all theories will ultimately be tested in the mire of human nature. Use rules to combat emotions and use stop-loss to buy the future.）
