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Malaysian SNR Daytrading
Malaysian SNR Daytrading
In this document I describe a day trading strategy that is based on Higher Timeframe (HTF)
Support and Resistance levels as they are defined in a trading method that is known as
Malaysian SnR. I will explain the basic principles of Malaysian SnR first and then describe a
daytrading strategy using these concepts.
Basically, Malaysian SnR levels are levels of Support and Resistance, that can be found at the
peaks and valleys of a line chart. This means that Support and Resistance in Malaysian
trading is not based on zones / areas, the levels are horizontal lines.
As you can see in the example above there are different type of levels.
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Here you can see the same levels when switching to a bar chart (Japanse candlesticks).
Beside the A- and V-levels there is another level type that is called a Gap. This level is located
at the Close/Open gap between two candles of the same color.
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Figure 3: Level type Gap in Malaysian SnR
As already mentioned, the levels work as Support and Resistance and can be in the state
Fresh or Unfresh. According to Malaysian trading theory, if a level is fresh, it is more likely
that the price will react at this level - i.e. move in the opposite direction.
A level is fresh if it has either never been touched by a wick of a candle after the level’s
origin or the most recent candle that is interacting with the level is going through it with the
candle’s body (close above or below the level).