Mastering SNR Trading: Open Close, MTF, and Advanced Techniques

Support and resistance (SNR) trading is a fundamental concept in technical analysis, but there are advanced techniques that can take your trading to the next level. In this comprehensive guide, we'll explore open close SNR, multi-timeframe (MTF) analysis, and other advanced concepts to help you identify high-probability trade setups.

Understanding Open Close SNR

Open close SNR is a variation of traditional support and resistance levels that focuses on the open and close prices of candles rather than just the highs and lows. This technique can provide more precise entry and exit points for trades.

Key Characteristics of Open Close SNR:

• Created by two consecutive candles of the same type (bullish or bearish)
• The area between the close of the first candle and the open of the second candle forms the SNR level
• Often referred to as "kissing candles" in supply and demand trading

How to Identify Open Close SNR:

1. Look for two consecutive candles of the same type (e.g., two bearish candles for resistance)
2. Mark the area between the close of the first candle and the open of the second candle
3. This zone becomes a potential support or resistance level

Benefits of Open Close SNR:

• More precise than traditional SNR levels
• Can provide earlier entry signals
• Often respects price action more closely

Multi-Timeframe (MTF) Analysis

MTF analysis involves examining multiple timeframes to identify high-probability trade setups. This approach helps traders confirm trends and potential reversal points across different time horizons.

Key Concepts of MTF Analysis:

• Higher timeframes (HTF): Monthly, weekly, daily charts
• Lower timeframes (LTF): 4-hour, 1-hour, and smaller timeframes
• Confluence: When multiple timeframes show SNR levels in the same area

How to Perform MTF Analysis:

1. Start with the highest relevant timeframe (e.g., monthly)
2. Identify key SNR levels on this timeframe
3. Move down to the next timeframe (e.g., weekly) and look for SNR levels near the higher timeframe levels
4. Continue this process down to your trading timeframe
5. Look for areas where multiple timeframes show SNR levels in close proximity

Benefits of MTF Analysis:

• Provides a broader market context
• Helps identify stronger support and resistance levels
• Increases the probability of successful trades

Advanced SNR Concepts

1. Left Shoulders

Left shoulders are a specific type of SNR level that can provide powerful trade setups:

• Formed when price breaks a resistance level, fails to hold as support, and then breaks lower
• Can be used to identify potential reversal points
• Often provide high-probability short entries

2. Support Become Resistance (SBR)

SBR is a key concept in SNR trading:

• Occurs when a support level is broken and then acts as resistance on a retest
• Can provide excellent short entry opportunities
• Confirms the change in market structure

3. Nested Entries

Nested entries combine MTF analysis with precise entry techniques:

• Identify an SNR level on a higher timeframe
• Look for smaller timeframe SNR levels within the higher timeframe zone
• Enter trades based on the smaller timeframe levels for more precise entries

Practical Tips for SNR Trading

1. Wait for reactions: Don't enter trades solely based on SNR levels. Wait for price to react to the level before entering.

2. Use confluence: Look for multiple factors confirming an SNR level (e.g., open close SNR + left shoulder + MTF confluence).

3. Consider market structure: Always be aware of the overall trend and market structure when trading SNR levels.

4. Manage risk: Use appropriate stop losses and position sizing to protect your capital.

5. Practice patience: Not every SNR level will result in a trade. Wait for the highest probability setups.

6. Refine entries: Use lower timeframes to refine entries on higher timeframe SNR levels.

7. Be aware of fresh vs. tested levels: Fresh, untested SNR levels often provide stronger reactions than levels that have been tested multiple times.

Advanced Entry Techniques

1. Touch Trades

Touch trades involve entering a position as soon as price touches an SNR level:

• Higher risk, but can provide excellent risk-reward ratios
• Requires strong confidence in the SNR level
• Often used in conjunction with MTF analysis

2. Rejection Candles

Waiting for rejection candles can provide more confirmation:

• Look for strong rejection candles (e.g., pin bars, engulfing patterns) at SNR levels
• Provides additional confirmation of the level's strength
• Can reduce false breakouts and fakeouts

3. Break and Retest

The break and retest strategy can be applied to SNR levels:

• Wait for price to break an SNR level
• Enter when price retests the broken level as new support or resistance
• Provides a higher probability setup with a clear invalidation point

Combining SNR with Other Technical Analysis Tools

To further improve your trading, consider combining SNR analysis with other technical tools:

1. Trend Lines

• Use trend lines in conjunction with SNR levels to identify potential breakout or reversal points
• Look for SNR levels that coincide with trend line touches

2. Moving Averages

• Popular moving averages (e.g., 50 EMA, 200 SMA) can act as dynamic support and resistance
• Look for confluence between static SNR levels and moving averages

3. Fibonacci Retracements

• Fibonacci levels often coincide with SNR levels
• Use Fibonacci retracements to confirm potential reversal points at SNR levels

4. Volume Analysis

• High volume at SNR levels can indicate strong support or resistance
• Look for volume spikes at key SNR levels to confirm their importance

Common Mistakes to Avoid in SNR Trading

1. Overcomplicating analysis: Don't try to mark every possible SNR level. Focus on the most significant levels.

2. Ignoring higher timeframes: Always start your analysis on higher timeframes before zooming in.

3. Failing to adapt: SNR levels can lose their effectiveness over time. Be prepared to adjust your levels as market conditions change.

4. Neglecting risk management: Don't risk too much on a single trade, no matter how strong the SNR level appears.

5. Forcing trades: Not every SNR level will result in a trade. Be patient and wait for the best setups.

6. Ignoring market context: Always consider the broader market trends and conditions when trading SNR levels.

Developing Your SNR Trading Strategy

To create an effective SNR trading strategy, consider the following steps:

1. Define your timeframes: Decide which timeframes you'll focus on for analysis and trading.

2. Establish rules for identifying SNR levels: Create clear criteria for marking support and resistance levels.

3. Determine entry and exit criteria: Develop specific rules for entering and exiting trades based on SNR levels.

4. Incorporate risk management: Set rules for position sizing, stop losses, and take profit levels.

5. Backtest and refine: Test your strategy on historical data and make adjustments as needed.

6. Keep a trading journal: Track your trades and analyze your performance to continually improve.

Conclusion

Mastering advanced SNR trading techniques like open close SNR, MTF analysis, and nested entries can significantly improve your trading results. By combining these concepts with solid risk management and a well-defined trading plan, you can develop a powerful edge in the markets.

Remember that becoming proficient in SNR trading takes time and practice. Continuously educate yourself, refine your skills, and adapt to changing market conditions. With dedication and persistence, you can become a successful SNR trader and achieve your financial goals.

As you continue your trading journey, always prioritize risk management and maintain a disciplined approach to your trading. The markets can be unpredictable, but by mastering these advanced SNR techniques, you'll be better equipped to navigate the challenges and opportunities that arise in your trading career.

Article created from: https://www.youtube.com/watch?v=tCvHwMPzocU&list=PLeIqcAoXQHcHc3njmunOOSrVPJqDVDhtA&index=2