Key levels · Lesson 4 of 20
OCL: open close level
An OCL forms when two candles of the same colour follow each other. The level sits where the first one closes and the second one opens. A bearish OCL acts as resistance and a bullish OCL acts as support.
Why it works
Two same-colour candles in a row mean price launched without pausing. Orders were left behind at the launch point, so price often comes back to it. On a lower timeframe this area usually looks like an order block, much like the "hidden base" in Smart Money Concepts.
Which OCLs matter
Same-colour pairs appear all the time. The OCL that matters starts a strong move, right after the candle before it changed colour, and ideally right after a liquidity sweep and a break of structure. An OCL in the middle of sideways chop means little.
Rules
- Look for the first join of a strong same-colour run.
- Prefer OCLs that formed after liquidity was taken.
- Use OCL mostly on the higher timeframe (H1 and above). It is the anchor of the MSNR entry model.
- Confirm the OCL with a lower-timeframe SNR, covered in Daily trend and timeframe pairs.
Common mistakes
- Marking an OCL at every pair of same-colour candles.
- Treating a lower-timeframe OCL inside a higher-timeframe OCL as strong. MSNR calls that the weaker combination.
Check yourself
1. What forms a bullish OCL?
2. Which OCL is the most useful?