1. SNRZ Reaction
Trade the reaction at a support or resistance zone, with the trend and a clear stop.
2.What it is
A support and resistance zone (SNRZ) is an area, not a line, where price has turned at least twice. This strategy waits for price to return to that zone and for a clear reaction candle, then trades in the direction of the reaction with the stop beyond the zone.
In simple words
Find a place where price bounced before. When it comes back, do not buy blindly: wait for a candle that shows buyers are really there again. Put your stop just under the zone, so if the zone breaks you lose a small, planned amount.
3.Why it may work
Orders often rest around levels the market has already respected: traders who missed the first move, stop-loss orders and profit-taking orders cluster there. Price may therefore react again. It is a tendency, not a rule; zones break all the time, which is why the stop exists.
4.Best market conditions
- A clear trend or a well-defined range
- Zones with at least two clean reactions
- A reaction candle at the zone (engulfing or rejection)
- Room to the next opposite zone for at least a 1:2 reward
5.When NOT to trade it
- Price is in the middle of a range with no zone nearby
- The zone has been hit many times and is weakening
- Major news is minutes away
- The reward to the next zone is less than twice the risk
6.Timeframes
Entry: 15M, 30M · Context: 1H, 4H
Mark zones on the higher timeframe once, then look for the reaction on the entry timeframe.
7.Entry rules and step-by-step setup
Entry rules
- Price trades into a pre-marked zone
- A reaction candle closes in your direction (engulfing, or a pin bar with a long wick)
- Enter at the close of that candle or on a small pullback
Step by step
- 1.Mark support and resistance zones on the 1H or 4H chart
- 2.Wait for price to come into a zone on the 15M chart
- 3.Check the trend direction: prefer reactions that agree with it
- 4.Wait for an engulfing or rejection candle to CLOSE
- 5.Enter, place the stop beyond the zone and the target at the next zone
- 6.Walk away: let the stop or target do the job
8.Stop loss
Just beyond the far edge of the zone (below it for a buy, above it for a sell), plus a small buffer for the spread. If a candle closes beyond the zone, the idea is wrong.
9.Take profit
The next opposite zone, or a fixed multiple of the risk (for example 2R). Consider closing part of the position at 1R.
10.Risk / reward
Aim for at least 1:2. Skip the trade if the next zone is closer than twice your stop distance.
11.Confirmation
- The reaction candle closes away from the zone
- The next candle does not close back inside the zone
- The trend or higher-timeframe bias agrees
12.Invalidation
- A candle closes beyond the zone's far edge
- A strong news candle drives through the zone
- The reaction candle's range is so large that the stop is too wide for your risk
13.Common mistakes
- Drawing hairline levels instead of zones
- Entering before the reaction candle closes
- Trading every touch of an old zone
- Moving the stop wider after entry
14.Example chart
How it performed in our own backtests
TESTINGBacktested on 1529 trades but not verified: 6 of 9 checks not met (win rate above 50%; profit factor at least).
- Win rate
- 32.8%
- Sample size
- 1529 trades
- Average planned RR
- 1:2
- Profit factor
- 0.88
- Worst max drawdown
- 34.6%
- Average per trade
- -0.086R
- Tested timeframes
- 15m, 30m, 5m
- Tested markets
- BTCUSDT, ETHUSDT, SOLUSDT
Period 2026-03-09 to 2026-10-03 · OKX spot candles (real exchange history, closed candles only) · engine bahari-bt-1.0.0 · run on 2026-10-03 · 1% risk per trade, 0.05R extra cost per trade plus spread · one position at a time, ambiguous candles resolved stop-first · parameters fixed before running.
Engulfing candle at a support/resistance zone, in the direction of the structure trend, stop beyond the swing, 1:2 target.
VERIFIED checklist
- ✔Sample size of at least 300 trades(1529 trades)
- ✘Win rate above 50%(32.8%)
- ✘Profit factor at least 1.2(0.88)
- ✘Average result per trade above 0.05R after costs(-0.086R)
- ✘Worst max drawdown at most 25%(34.6%)
- ✔Average planned reward:risk at least 1:1(1:2)
- ✔Tested in at least 4 market/timeframe conditions (2+ markets, 2+ timeframes)(9 conditions, 3 markets, 3 timeframes)
- ✘Profitable in at least 67% of the conditions(3 of 9)
- ✘Profitable in BOTH halves of the history (profit factor at least 1 in each)(first 0.85, second 0.92)
Results per market and timeframe (9 runs)
| Market | TF | Trades | Win rate | Total R | Max DD |
|---|---|---|---|---|---|
| BTCUSDT | 15m | 189 | 31.2% | -25.0 | 29.74% |
| BTCUSDT | 5m | 144 | 29.9% | -27.7 | 32.95% |
| BTCUSDT | 30m | 187 | 31% | -24.4 | 27.26% |
| ETHUSDT | 15m | 167 | 38.3% | 14.8 | 12.92% |
| ETHUSDT | 5m | 155 | 33.5% | -13.2 | 22.78% |
| ETHUSDT | 30m | 190 | 28.9% | -36.1 | 32.83% |
| SOLUSDT | 15m | 174 | 36.8% | 6.1 | 20.98% |
| SOLUSDT | 5m | 139 | 36% | 1.9 | 15.22% |
| SOLUSDT | 30m | 184 | 30.4% | -28.5 | 34.57% |
Reading this honestly: VERIFIED needs 300+ trades, a win rate above 50%, profit factor 1.2+, drawdown under 25%, profit in at least two thirds of the conditions and in both halves of the history. A strategy that fails here can still be worth learning, but do not risk money on it before testing it yourself in the Strategy Lab.
Past and backtested results never guarantee future results. Nothing on this page is financial advice.
15.Quiz
16.Practical challenge
Open a challenge, mark the nearest support or resistance zone first, then decide BUY, SELL or WAIT.