Advanced MSNR Strategy

Session1

Support and Resistance

• Key levels are marked on the close of the candle.

• Support:

  • Occurs when you have two opposite candles (bearish and bullish).

  • Marked on the close of the bearish candle.

• Even with gaps/jumps in candle opening, mark support at the close of the bearish candle.

• Resistance:

  • Occurs when you have two candles of opposite movement (bullish and bearish).

  • The top is the resistance.

  • Mark the line on the close of the bullish (usually green) candle.

  • Gaps in candle opening don't change where you draw the line; still mark at the close.

Support Becomes Resistance (SBR)

• When a support level is broken, it becomes resistance.

• Expect the market to retrace to this point and then pull back.

• No need for liquidity or inducement when trading.

Resistance Becomes Support (RBS)

• When a resistance is broken, it becomes support.

• Expect the market to come back to this level and then continue upward.

Charts

• In MSNR, two opposite candles are enough for support and resistance.

• Support lines are below, resistance lines are above.

• If a white candle jumps below where it should have opened, still draw the line on the close of the black candle.

• RBS: Resistance broken becomes support.

• SBR: Support broken becomes resistance.

• Different types of RBS/SBR are treated differently (advanced topic).

Quasimodo (QM) / Left Shoulder

• A failed RBS or SBR becomes QM.

• Types of QM: APES QM and Feet QM.

• Logic:

  • Support broken becomes SBR.

  • Resistance broken becomes RBS.

  • Failed RBS/SBR becomes QM.

• QM Identification:

  • Resistance is broken, becomes RBS.

  • Price comes back, breaks through it again; this failed RBS is now a QM.

  • Support is broken, becomes SBR.

  • Price comes back, breaks through it; that failed SBR is a QM.

Open Close Level (OCL)

• Candles of the same color.

• The close of the second candle is the OCL.

• If there is an additional candle of the same color, then have a new OCL.

• OCL is simply candles of the same color.

• With bullish candles, the close is the OCL.

• With bearish candles, mark the OCL at that level.

• Important: The current forming candle doesn't count. The close of every candle is the OCL.

Session 2:

Types of OCL

• One LAB OCL: One level above or below OCL.

• s-OCL: Support OCL.

• r-OCL: Resistance OCL.

• LS-OCL: Left side OCL, sometimes acts as a QM.

Support and Resistance OCL

• For a support or resistance OCL, a specific pattern must be observed.

• A green candle is followed by black (bearish) candles.

• This area becomes the resistance OCL because it forms after the market encounters resistance.

• The green candle on the left must engulf the subsequent candles.

• For support OCL, the opposite pattern is seen: a black candle followed by green candles. This forms after a support level is established.

Engulf OCL vs. Support/Resistance OCL

• Engulf OCL is different from support and resistance OCL.

• In resistance engulf OCL, after a bullish trend, a black candle engulfs previous green candles.

• In support engulf OCL, after a bearish trend (two black candles), a green candle engulfs them.

• The key difference is that engulf OCL involves one candle engulfing multiple previous candles, while support/resistance OCL is based on the formation after a support or resistance level.

One Lap OCL

• One lap OCL means one level above or below an OCL.

• To identify a valid one lap OCL, check the levels directly above and below the OCL.

• If the level directly below an OCL is a support or resistance, it does not qualify as a one lap OCL.

• A valid one lap OCL has another OCL, not a support or resistance, directly above or below it.

Left Side OCL (LS-OCL)

• LSOCLs are OCLs that act like QM (Quasimodo) patterns but are not true QMs.

• LSOCLs are broken twice by the market.

• It must be broken twice and be fresh (untested).

• First, the OCL acts as either support or resistance but is broken.

• When the market returns, it breaks it again.

• LSOCLs are particularly strong on weekly and daily time frames.

Session 3:

Line Charts

• Line charts are particularly useful in trading, especially for identifying malicious Support and Resistance (SNR).

• To add line charts in TradingView, locate the chart type dropdown menu.

• Line charts help in trading malicious SNR.

Apex

• Apex refers to every swing point (highs and lows) on the chart, specifically the external ones.

• External swing highs and swing lows are considered apex points.

• Higher highs and higher lows setup, resistance points are apex.

• External swing points are crucial; understanding them is fundamental for trading confidently.

• When the market trends downwards, these swing points act as resistance apexes.

Apex Supports and Resistances

• Apex supports and resistances are identified at external swing points.

• For Apex support, these are the external swing supports.

• Internal swing points are not Apex supports.

• To identify Apex support, look for supports that led to a breakout.

• With Apex resistance, these are the external apex highs.

• Do not use internal resistances.

• External swing points are where Apex resistances and supports are found.

• Look for resistance points that led to a breakout to identify apex resistances.

Internal Apex Break (IAB) Resistance and Support

• Deals with line charts and involves internal swing points that are valid for trading.

• It refers to internal support or resistance levels that lead to a breakout, either internal or external.

• Identification on the chart:

  • When marking supports, IAB supports are valid if they led to a breakout.

  • Important to note that not all internal supports are strong, but IAB supports are reliable due to the breakout.

  • When marking resistances on the chart, look at internal resistance which leads to a breakout internally. This IAB resistance can hold price.

Apex Break QM (ABQM)

• Apex Break QM (ABQM) are QM patterns formed when the market breaks after an Apex resistance or support is established.

• An ABQM forms immediately or shortly after a resistance is formed.

First Time QM (FTQM)

• First Time QM (FTQM) occurs when a key level becomes a QM for the first time, and these patterns are very powerful.

• When the market breaks a series of higher highs and higher lows, FTQMs are formed at each key level for the first time.

Second Time QM (STQM)

• If it becomes QM again the second time, these are STQM

Internal Apex Break QM (IABQM)

• IABQM are gotten from IAB resistance and support.

Session 4:

Storyline

• Storyline is like a trend (bullish or bearish).

• In Malaysian SNR, it's called Storyline.

Key Levels

• Apex, support, resistance, QM, and OCL are all key levels.

• Key levels can be identified on daily, weekly, and monthly timeframes.

Bullish Storyline Formation

• Requires 'X reject X and Y breakout'.

  • X represents higher time frames (monthly, weekly, daily).

  • Y represents lower time frames (weekly, daily, 4-hour).

• A key level (SBR, ROBS, OCL, support, resistance, QM) must show rejection.

  • Rejection: Candle wicks through the key level, but the body doesn't close below (for bullish) or above (for bearish).

• After daily rejection, expect a 4-hour breakout.

• The high that causes the breakout MUST be formed before the rejection.

• Daily rejects daily, four hour breakout.

• Weekly rejects weekly, daily breakout.

• Monthly rejects monthly, weekly breakout.

Bearish Storyline Formation:

• Key level rejects, awaiting breakout.

• The high that causes the breakout or low that forms the breakout MUST be formed before the rejection.

Fresh and Unfresh Levels

• Fresh = Unmitigated (level is still valid).

• Unfresh = Mitigated (level has been used already).

• Only the wick/shadow of a candle makes a key level unfresh.

• Body breaking above or below does not make it unfresh; it remains fresh.

• When a candle body closes above or below a key level, it makes the key level fresh again.

• Valid storylines usually start from fresh levels.

• If a key level becomes unfresh but doesn't lead to a breakout, it can still be used as rejection.

• Levels can be used multiple times as rejection until it leads to a breakout.

• If an unfresh rejection and breakout aligns a daily storyline with a weekly trend, the storyline can be valid.

Session 5:

FTFL (First Time Frame Level/Line)

• FTFL identifies market direction after a storyline is set.

Identifying FTFL

• Post-rejection and breakout, identify key support/resistance or QM levels.

• These levels are crucial for FTFL.

Drawing the FTFL

• After a breakout, anticipate support/resistance or a QM level.

  • Draw the first line at these levels.

Chart Examples (Uzi JPY)

Daily Rejection and Four-Hour Breakout

• Daily rejection, four-hour breakout: draw FTFL on the daily support level.

• Bullish storyline set upon breakout.

A+ Setup

• Daily rejection, four-hour breakout. Support is the initial entry point.

• Expect a revisit to support before an upward move; FTFL line should be fresh.

Weekly Rejection and Daily Breakout

• Weekly rejection, daily breakout: draw FTFL on the weekly chart.

• A+ setup: buying opportunity at the support level, targeting fresh OCO.

Rejection from Key Levels

• Weekly rejection forming resistance: A+ setup if revisited.

Scenarios Without Clear Support or Resistance

• Use Support OCL or Resistance OCL for FTFL at all-time highs/lows.

Resistance OCL

• Resistance mitigated: use OCL within the daily candle as the FTFL.

Support OCL

• Support mitigated: use OCL within the daily candle as the FTFL. FTFL must be fresh!

• Key levels: Support/Resistance, Support OCL/Resistance OCL.

Additional Examples

• Daily rejection, four-hour breakout: bullish, entry at support.

Importance of Knowing the First Place the Market Returns To

• Prevents losses by focusing on key levels after a storyline, unless the storyline changes.

Homework

• Backtest daily timeframe rejections and support revisits after breakouts.

Definition of FTFL

• The initial point the market targets after a storyline forms.

Valid and Non-Valid Scenarios

• If the market changes storyline before revisiting, the level weakens; use for scalps only when the storyline is fresh.

A+ Setups: Key Takeaways

• X rejects X, creating support or resistance.

Continuation and Further Learning

• Handling scenarios where the market doesn't return to support/resistance will be covered next.

OCL Usage

• Support/resistance OCL acts as the first line when original support/resistance is mitigated.

Sesssion 6:

Storyline Formation

• When a storyline is just formed, look for support or resistance.

• If support and resistance are not valid, look for ROCL or support OCL.

• Sometimes the market doesn't return to support/resistance or RSOCL after a storyline forms.

Continuation Family

• Applies when a storyline is already established.

• Focus on valid one-leg OCLs (one OCLs) for continuations.

Trading Strategy

• If the market doesn't reach expected resistance or support after breakouts, trace continuation.

• Find continuation trades where the market keeps forming new candles.

• Each day or week, the first place to draw a line is the First Time Frame Level (FTFL) which indicates where the market is heading.

• If the market doesn't reach the FTFL, and a new candle forms, the next FTFL is the one-leg OCL.

• Look for Second Time Frame Level (STFL) inside the FTFL but note that you won't always find a valid STFL.

• Mark the FTFL closest to the current market.

• Filter FTFLs by checking for a valid STFL inside them.

OCL Usage

• One-lap OCL is the first thing to look for when starting.

• Sometimes ignore the one-lap OCL and use other key levels.

• If the current candle is forming, you can't take it as your OCL.

• Valid one-lap OCL candles can be used.

• If an area is valid to take a trade, look at the previous candle as well.

• If the previous candle closed above a key level (QM), focus on that key level instead. Mark this key level as your FTFL.

Key Considerations

• For continuations, one-lap OCL has top priority.

• Use one-lap OCL when the previous candle did not break any key level.

• If the previous candle broke a key level, prioritize QM.

• The top priority QM is ABQM plus FeetQM. Use if it's valid.

• If ABQM is invalid, use other QMs (FTQM or STQM).

Filtering Process

• On USDJPY example, identify multiple potential key levels after a bullish breakout.

• Eliminate levels to pinpoint the most valid and concrete key level.

• Ensure the market is still aligned with the storyline for the level to remain valid.

• Avoid using Resistance Becoming Support (RBS) or Support Becoming Resistance (SBR) directly after breakouts on FTFL.

• Acknowledge the risk of missing out and potentially use a smaller trade size on less favored levels.

Key Takeaways

• If the market breaks multiple key levels, check the first key level the market broke.

• Prioritize the first RBS broken.

• Trading RBS or SBR is not advisable but can be a trade location.

• FTFL levels are support, resistance, and for continuation, one-lap OCL (when the previous candle breaks a key level, use that key level).

Session 7:

STFL (Second Time Frame Level/Line)

Definition

• STFL indicates potential buy or sell zones in the market.

Identification Process

• After marking the FTFL (First Time Frame Level/Line), identify potential supports or QMs (if bullish) or resistances or QMs (if bearish).

• Supports consist of a bullish and a bearish candle. Mark the beginning of the first candle (the black candle).

• Draw a rectangle from the start to the end of these candles to define the STFL area.

Time Frame Alignment

• FTFL on Weekly: STFL on Daily, TTFL (Third Time Frame Level/Line) on Four Hour

• FTFL on Daily: STFL on Four Hour, TTFL on One Hour

• FTFL on Monthly: STFL on Weekly, TTFL on Daily

STFL Key Levels

• For Buys: Look for Support or QM on the STFL.

• For Sells: Look for Resistance or QM on the STFL.

• Key levels must be fresh, except when the support or resistance is an Apex. Apexes can still be marked even if they are not fresh.

How to Mark

• Mark FTFL on support, resistance, or QM.

• Draw a rectangle box, and extend to cover the wick.

• Go to lower time frame to look for SCFL inside box.

  • The only key level I'm looking for should be inside this box.

When No Key Level Is Found

• If no key level is found within the FTFL box when looking for the STFL, ignore that zone.

• Look for another key level above or below the box.

QM and Support/Resistance

• If both QM and Support/Resistance are present within the FTFL box, observe both as potential trade entry points.

Draw on Liquidity

• The market moves from key levels to key levels.

• When entering a trade, allow it to run to the next draw on liquidity (where the price is expected to go).

Important

• SCFL is important. In other words, the second time frame key level is important.

• Look for support resistance or QM inside your FTFL Box

Session 8:

TTFL (Third Time Frame Level)

• TTFL refines trading strategy:

  • Aims for small SL (Stop Loss).

  • Aims for bigger TP (Take Profit).

• Key levels to watch:

  • Supports for buys.

  • Resistance for sells.

  • Equilibrium.

Applying TTFL with FTFL and STFL

• FTFL (First Time Frame Level):

  • Establish FTFL on a higher timeframe (e.g., weekly).

• STFL (Second Time Frame Level):

  • Move to a lower timeframe (e.g., daily) for STFL.

  • Mark a box from the beginning to the end of the STFL, extending one step to the right.

• TTFL (Third Time Frame Level):

  • Go to an even lower timeframe (e.g., 4-hour, 1-hour).

  • Look for:

    • Supports or equilibrium for buys.

    • Resistance or equilibrium for sells.

• If SCFL support is fresh, mark as an Apex.

Using Equilibrium

• If no key levels (support, resistance, QM) are found on the TTFL, use the equilibrium of the STFL box.

• Equilibrium = Halfway point of the STFL box.

• To find equilibrium, use Fibonacci tool from the beginning to the end of the STFL box.

Additional Concepts

• SCFL is stronger when fresh.

• X rejects X and Y breakout storyline can also be X rejects X rejects X and X breakouts.

• When a previous candle breaks a key level, work with that level.

Entry Points

• Look for entries inside key levels or at breakout points.

• When marking key levels, look for entries inside the key level or at the point where the candle broke out.

• If there's no key level inside FTFL, look below to see if there are other key levels.

• When deciding based on QM (susceptible) or support/resistance (strong), consider splitting entries between the two.

Session 9

Confirmation Entries

• Confirmation entries can be used for both reversals and continuations.

• The concept can be applied on one-hour or four-hour timeframes.

Key Components

• Rejection: Look for rejections on support or resistance levels.

  • Rejections on QM (Quick Momentum) lines are weaker.

• Breakout: Observe breakouts following rejections.

Rule for identifying rejection

• One hour/Four hour rejects one hour/four hour support or resistance, which leads to one hour/four hour supports and resistance

How to Use the OCL

• If the support is not fresh, use the Order Close Level (OCL) above.

• Avoid using an OCL if it's not clean enough, which requires practice to identify

Valid Trade Confirmation Entry

• Confirmation entries must occur at key levels on higher timeframes (daily, weekly, monthly).

• These key levels include:

  • Support and Resistance (S/R)

  • Resistance becomes Support or Support becomes Resistance (RBS/SBR)

  • Quick Momentum (QM)

Taking Trades on Support

• Draw a support box from the body's beginning to the lowest/highest wick.

• Enter trades at the equilibrium (middle) of this box.

  • Use seven pips for USDJPY or three pips for gold.

When Support is Mitigated

• Enter inside the long wick that mitigated the support.

• Draw from the wick's beginning to its end and enter at the equilibrium.

• Use 5.5 or 7 pips.

Trading One-Hour Setups

• Entries must correspond with the current storyline (trend) on higher timeframes.

Confirmation Entry Example (USDJPY)

• If the market doesn't reach the expected entry point (FTFL/STFL), it might use a confirmation entry from a key level, such as ROBS.

Trading After Rejection and Breakout

• If the market moves with high momentum, it might not dip down to the support level.

  • Place the first trade at the highest wick with the biggest funds using normal pip settings (5.5-7 pips).

  • Place another trade at the body of the one-hour candle.

Continuation Entries

• Use one-hour rejects one-hour for continuation and confirmation entries.

  • Ensure the market hasn't reached the draw on liquidity.

Scenarios

• Rejection, No Breakout: The level remains valid.

• Rejection, Breakout: Expect the market to return to the created resistance/support level.

  • The move must be sharp without forming more structures.

Analysis Schedule

• Perform Monthly analysis only on the first trading day of each month.

• Perform Weekly analysis at the market close (Saturday/Sunday) or open (Monday) of every week.

• Perform Daily analysis at the close of each trading day.

Storyline Identification (Trend Bias)

• Determine bias by combining a higher-timeframe rejection with a lower-timeframe breakout.
  • Example: Monthly rejection + Weekly breakout ⇒ Monthly turns bearish.

• Record bias per timeframe as B (bearish) or b (bullish) in a log, together with last-update date & time.

• Market normally respects the closest valid bias level first (Daily before Weekly, Weekly before Monthly).

Key-Level Hierarchy (inside each higher-TF zone)

1. OCL – origin candle level (usually the rejection candle + adjacent wick).

2. STFL – second-timeframe level (key level inside OCL; must be fresh).

3. TTFL – third-timeframe level (refinement inside STFL; use a clear support/resistance or the 50 % equilibrium if none).

4. If working with a 4 h rejection, drop to 1 h for HCFL / STFL refinement, then equilibrium.

Entry Construction

• Draw a box from OCL body to its wick, extend one step right.

• Identify the first fresh key level (support, resistance, QM, SBR/SBR) inside that box → this is STFL.

• Drop one timeframe lower, mark TTFL at the next clear key level or the equilibrium of a long wick.

• Place entry on TTFL line.

• Stop-loss:
  • USDJPY: use 5.5 or 7.0 pips.
  • XAUUSD (gold): use 3.0 pips (300 points).

• Spread buffer: shift entry by an extra 0.5–1.0 pip (or 0.3–0.5 on gold) toward stop-loss to guarantee fill even on a single-tap touch.

Risk & Profit Targets

• Typical reward ratios from weekly setups: 1{:}40 to 1{:}55.

• First target = nearest obstacle/last high-low on the execution timeframe; take 80\% off, let 20\% run.

• Market may use Daily key level first; if it later returns to Weekly level, expect Daily storyline to have flipped.

Trade-Execution Flow (quick recap)

1. Log storyline biases: Monthly → Weekly → Daily.

2. Select the nearest higher-TF zone aligned with bias (e.g., Weekly OCL for buys/sells next week).

3. Mark STFL & TTFL; add spread buffer; set SL & TP.

4. If price skips both Daily & Weekly zones, wait for confirmation entries (re-rejection + breakout) at next key level.

5. Repeat process for each instrument (USDJPY, Gold, BTC, etc.) only once per scheduled analysis window.

Strong FTFL Entries

• Define FTFL from the previous candle’s OCL / OCR.

• A level is considered “powerful” only if the very next candle (next day or next week) taps that FTFL.

  • Immediate tap ⇒ high-probability setup.

  • No tap on the next candle ⇒ strength drops; treat as a secondary idea.

• If FTFL contains valid STFL & TTFL layers, an immediate tap compounds probability.

Timing & Level Priority

• Sequence to keep a level high-probability:

  1. Previous candle forms FTFL.

  2. Next candle must touch it.

• If price skips the FTFL for one full period, re-classify it as “less powerful” and reduce exposure.

Risk Management Guidelines

• Normal risk on strong FTFL: e.g.

  • Usual stake =100.

• Reduced risk on weak/aged FTFL:

  • Stake ↓ to about 20\% (e.g. 20) of normal.

Obstacles (Key-Level Roadblocks)

• Any swing high/low, RBS/SBR, apex resistance/support can block the path to TP.

• Definition: “Obstacle = key level that can prevent price moving higher or lower.”

• Mark obstacles on the SAME timeframe as the entry:

  • Weekly entry ⇒ scan weekly chart for obstacles.

  • Daily entry ⇒ scan daily chart for obstacles.

• Typical actions at an obstacle:

  • Partial TP (e.g. 80\%).

  • Tighten or trail stop.

Target Placement

• If no obstacle exists on the entry timeframe, let trade run to previous period extreme:

  • Bull moves ⇒ previous day/week high or close.

  • Bear moves ⇒ previous day/week low or open.

• When obstacles exist between entry and target, manage accordingly (partial exit or stop adjust).

Confirmation Entries (when FTFL is not tapped promptly)

• Wait for continuation / reversal pattern on current timeframe before trading.

• New trade then targets the previous period extreme on that (current) timeframe.

Practical Examples Recap

• USDJPY weekly: previous week created FTFL, current week tapped it immediately ⇒ strong trade with 1{:}46 R:R.

• Gold weekly: similar logic—if current week had tapped FTFL, it would have been high-probability; failure to tap downgrades the zone.

Quick Checklist

• [ ] FTFL drawn from previous candle?

• [ ] Next candle tapped it?

• [ ] STFL / TTFL present in the zone?

• [ ] Obstacles on the same timeframe?

• [ ] Risk sized per level strength?

• [ ] TP aligned with previous period extreme or before first obstacle?

14B ENTRY MODEL

• Name: 1-h / 4-h breakout ("14B").

• Two variants.
  • 1-h path: 1-h reject → 1-h S/R forms → 1-h breakout → entry at 1-h mid-wick (equilibrium).
  • 4-h path: 4-h reject → 4-h S/R forms → 4-h breakout → entry at 1-h equilibrium inside the 4-h S/R (FTFL → down to SCFL).

• Primary use: continuation / confirmation trades.

D1W4 ENTRY MODEL

• Name derives from Daily (D1) & Weekly (W4) interaction.

• Purposes: pullback (retracement) or confirmation when price misses TTFL.

Daily / 1-h Setup

1. 1-h must mitigate a DAILY key level with either:
   • single wick, or
   • single full candle close.

2. 1-h breakout follows.

3. Entries (priority order)

   1. 1-h S/R equilibrium (strongest, "100\% strength").

   2. 1-h QM equilibrium (secondary, "50\% strength") – risk only \approx20\% of normal size.

Weekly / 4-h Setup

1. 4-h must mitigate a WEEKLY key level with a wick or single candle.

2. 4-h breakout confirms.

3. Entries

   1. 4-h S/R → mark FTFL → drop to 1-h for SCFL & equilibrium.

   2. 4-h QM box → same drill (smaller position).

VALIDITY RULES

• Only one candle may break the higher-TF key level.

• High/Low that causes breakout must be formed before the mitigation; patterns formed after mitigation are invalid.

• If price never returns to the marked entry zone, skip the trade—no chasing.

• Model does not imply storyline change; check higher-TF rejects/breakouts for trend bias.

TAKE-PROFIT GUIDELINES

• Entry from DAILY level → TP at closest DAILY key level / obstacle.

• Entry from WEEKLY level → TP at closest WEEKLY key level.

• During pullbacks, exit at the first qualifying obstacle; do not hold against dominant storyline.

QUICK PRIORITY CHECKLIST

1. Confirm higher-TF trend (storyline).

2. Wick or single-candle mitigation at key level.

3. Breakout on lower TF.

4. Mark preferred entry zone
   • S/R equilibrium (full size)
   • QM equilibrium (reduced size).

5. TP at nearest key level on same TF as mitigation.

6. Skip if price does not return; avoid forced entries.