Sonic R. System

Yes and whilst you can watch waves SonicR is about Resistance too.
High Probability Entry's, these are not.

Drop a fib on the last major Wave!!!

Pablo
p.s. a statement to be challenged or confirmed :-)

Hi Sonic Guru's,

I might be completely barking up the wrong tree but can ask your for your input with.....

I've been thinking for sometime on two possible understated points in SonicR .....

1. DD rarely puts a SL on his charts.
I know that he goes to BE as early as practical and is unarguably a successful Soniker.

I suspect that a trick being missed here with Capital Preservation. It's the most important lesson not in the current SonicR manual.
Does it matter that you've been Stopped Out at BE? As we've said before, No because you live to fight another day. Often a Stop Out at BE leads to another EP very soon after, or it was just the wrong wave to ride in the first place (fakey set-up).



2. High Probability Entries - why aren't Fib Retracements a Resistance lesson in the SonicR System, as well as a possible Continuation Entry?
For example, if SonicR set-up for a short and Fib Retracement at 31.8% or 50% (not sure if 61.8's should be included too) then its a High Probability Continuation set-up and vice-versa. The opposite can be said if a SonicR Long Set-up presents itself in the Continuation Area for a Short i.e. Low Probability SonicR set-up.

I noted that on Rastamans last Set-up post, which I think has been deleted now, he entered Long close to the 50% retracement for a GU Short. He also put the SL under the last Swing Low.
Whist he could have gone to BE early, the Trade turn unfavourably against him resulting in another loss.

Pablo
A SonicR Wannabe - just to put some context into this post!

Edit No.1: minutes after posting the above, EU set-up as Point2 and GU looks to be going the same way - see charts below for fakey SonicR and High Probability SonicR's

Edit No.2: GU go to BE as Point1- see Chart3

Edit No.3: EU hit TP1 - 162% Fib Extension (Pic4) and GU looking ??? for hitting TP1 (162%Fib Ext - Pic5) but rest easy because SL at BE

Edit No.4:GU Stopped Out at BE (Pic6) if the past Swing High not broken will possibly look to reenter at same EP at before, as per point1.

Edit No.5: Any High Probability Continuation Trades have past for EU and GU with significant HL on both - see Pics 7. Back to looking for Standard SonicR set-ups.

P&L for the two Trades +33 pips

I "would like to see" an up-wave...

And Of course I will go in only after the wave is formed with Sonic Dragon...

Sonic
P.S I am super bz, with my proj, barely have time to wait for a set up or monitor the trade...Great power comes with great responsibility I suppose..

There are no big movements in this pre-holiday unliquid market.
Still... GBP/USD:

Hello Sonikers !

I think EU is doing the range and a setup long at this level could lead to a loss.

The Dragon went up down up and the potential EP line (white line) cross a lot of candles.

Is that a good sign of range market ?

Remarks welcome

hmmmmm, a wave watcher, are we?

Friday was my last day for the year. I'm demo trading until after the New Year.
But I demo trade the way I trade. You do not want to develop bad habits on demo that will carry over live. Demo is to practice and keep the eyes sharp.

I know TAH has become enthralled with Volume and Fibs. I do not use volume at all (it leads to guessing and judging waves, i.e. you trade volume, not the waves, for example, "SonicR long just triggered but I'm not taking it because of the low volume"). SonicR does not use volume to trade or not to trade.

I do use the fib expansions, of course. But I really think new Sonikers should forget volume and fibs, and focus on waves and real S/R.

Why not take off all of the indicators off of your charts except for the dragon for the last two shortened weeks of the year, and let the waves unfold before your eyes? Afterall, that is the heart of the SonicR, and everything else, and I mean everything, tends to distract one from the heart of the matter.

Hi DD,

I'd be interested to know if you played this trade as per Point1 Post 8962?

Pablo

EJ M15: This pair is just an example of what has been going on across the board this session......pump & dump. Look at the drive down on increasing trading. Look at the pump back up on lower and decreasing trading. Then, and this is the goody part, look at the failure at the top and the sudden higher trading as price quickly starts to fall! The big players, across the board, have been trying to coax in long traders....and this last pump & dump shows they are not having much luck at it. Of course, this is speculation. We trade what we see.

Edit: No one can tell what will happen. However, I would not be surprised if consolidation takes place in yellow area before a good run down. The pump 'n dump waves have not presented any good SonicR breakout, not yet.

I pay no attention whatsoever to fib retracement. S/R & waves only for EP/SL.

Again, not a SonicR concept.

This is an example of pure supply and demand, trading range contraction after the preceding range expansion. It is as old as the hills, and nothing nefarious about it.

Appreciated but Point 1 was about going to BE as soon as.
Pablo

GU: Looks to finally be breaking down after the pump 'n dump cycles so far this session. I agree with ddaytrader, Pump & Dump is NOT a SonicR concept. But it happens to be the way the big players trade sometimes.

If GU continues to drop, I would not be surprised to see the rest of them begin to follow suit.

Edit: While I sometimes allude to volume, pumps, dumps, etc., you will see that I also show "setups" and change them as session trading changes the waves. I have tried to do it this first session of the week, and hopefully some good has come from posting setups and then showing how they can change before they ever become tradeable. GU, my trade from Friday is my only trade, and it is doing quite well. The rest I have posted, I just was not excited about the prospects of any good run off of the Eps. I hope some picked up on that. Yes, some SonicR breakouts so far have resulted in 20 -50 pip runs beyond SonicR Ep....noteably EJ long. But the rest have been disappointing. And I am happy to have not traded any of those other breakouts.

GU M15 Plain Chart:

The trend is down (H4, Daily) so I would have picked "A" as first Ep. Eventually "B" would have become Ep. So, I would have entered at "C", and promptly suffered a whipsaw up. Not reaching my SL at "D", the whip up would have had me adjust any prior FE to that shown. Tp1 and Tp2 would then be at the FE 162 and 262 levels. Tp3 would be at FE 424, the bigger picture in chart 2.

Note that I am already in this trade from Friday, having sold off as my Tps were reached and then going back in higher and riding it down again.

Domas4, the SonicR entry was the previous high. The Ep you show is not SonicR. It is too low.

TAH,

this is first class stuff. Thank-you once again.

The following statement is not intend to inflame but to clarify the importance of Higher Time Frame Analysis.

What I don't understand, or perhaps I should say, this somewhat contradicts earlier posts today where fellow Sonikers were looking to go Long on GU? According to this process, they didn't do their Higher Time Frame Analysis.

Assuming these charts and narrative will become part of the updated SonicR Manual, would it be sensible to explain this analysis as....

4hr Chart Bias has three options:
1. Trend will Continue because there's no obvious Support/Resistance levels
2. Trend could Reverse as there are possible Support/Resistance levels
3. No definable Trend


Pablo

I thought you said point 2. The GU was a + .5 pip (1/2 pip) for a BE trade.

Yes, that would be sensible. And, from past Sonic posts, the H4 time frame chart is the one chart that individual candle configurations are taken into account, i.e., hammer, pin bar, etc. That, maybe, is unfortunate and should not be a part of SonicR since different folks will see different H4 candles because their server/broker is in different time zones. As ddaytrader emphasizes, not individual candles but waves and S&R should be the focus. And because the H4 chart individual candles look different to different traders, that focus should apply to the H4 chart as well.

GU Trade: Tps 1 and 2 for today have been reached.

Hi,

I am off to England tomorrow so i won't be back until the new year. Just wishing everyone a happy christmas and a happy new year. Big thanks to DD for the help he has given me in 2009

Bring on 2010 and lets all make a lot of pips