What types of SNR levels are there, and how should you understand them?

  • SNR
    The opening and closing levels of the price are both SNR levels
    The colloquial term for SNR is Support & Resistance, which means 'support and resistance'

The above are respectively for falling, rising, rising and falling, falling and rising; the black horizontal lines are all SNR levels. Of course, there are more than just these candlestick combinations. Any overlapping opening and closing points can be SNR levels!

In the above real trading case, it can be seen that the frequency of SNR occurrences is quite high, with excessive noise.

  • How to filter out noise to find more accurate SNR levels?

Figure 1 is a line chart

Figure 2 is a candlestick chart

  • The combination I personally like to use is an alternating SNR level, especially in the case shown above where it engulfs the previous candlestick. The reason can be understood as the probability of continuous rising and continuous falling levels is too frequent. Hereafter referred to as SS&BB. If all SS&BB are drawn out on the chart, it will definitely be too chaotic. I consider it a less effective level, which can also be understood as the engulfing combination representing price reversal & creating obvious turning points.

Beginners can start by identifying the peaks and troughs of the waves from the line chart, also known as the line chart V points, while ignoring the levels in the consolidation areas. For beginners, I recommend doing this, as the win rate and profit potential at reversal points are more cost-effective. It's not that you can't draw lines and engage in high-frequency trading in consolidation areas, but rather to first hone your judgment and sensitivity on key turning points as a foundation, and then it will be more appropriate to carry out high-frequency operations.

Swan SNR3.0 Trading Observation

For a deeper understanding of levels

  • When the price reaches a support level, if there is no..., it usually indicates insufficient market buying power and may signify that the support is ineffective.

  • A slow decline may be absorbing funds, but it may also indicate support failure. At this time, special attention should be paid to changes in trading volume, especially...

  • If the support has already been..., then its effectiveness is significantly reduced and the risk of a breakout is higher.

  • Confirm market sentiment and buying power intensity through..., order depth to assist judgment.

  • The safest strategy is to wait for 'confirmation of rebound closing' before entering, to avoid directly in...

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