Sonic R. System

Darn good trading, DanPa!

I've just one question. Why didn't you put it all on EU instead of spread out over the other three pair with higher spreads? You'd have made more!

1; spread the risk
2; i dont mind to pay 3 pip into gj...(eu 1.7 gu 2 ey 2)

EU Watch, Long Trade Update:

I have added on the London session dive. The dive currently is a 50% pullback from the run up. This is a 'retrace' entry on this 'higher low'. The SL has been moved higher.

Edit: The added second chart shows how I hope this SonicR long trade will run (blue violet lines).

EU Watch:

The euro session is very bullish today.....good H/L sequence in PA....range break may be in progress. If not now, then I expect in the US session.

Yes, pretty bullish today for EURO. It started rallying before even
London opened. I think this should be pretty good resistance.

Hmm, interresting to watch G/U 5m chart. Looks like it is
being traded in small range, but still manages to make H.Highs
and H.Lows. I'll watch for a break.

what do you mean by "range break"?

sorry for my bad English understanding.

London activity was responsible for the dive down thru the S&R area you have marked. So, this time I would not be surprised if they leave it up to the US traders to accomplish the push back up thru it.

What we could see, then, is another HL before the push. another pullback first. I might add to the trade again if that happens.

Hello,

Did anybody take CHF/JPY like in attachement?

Can anybody explain why this entry was bad?

BTW, are you increasing or decreasing lot size as you build-up
a position like this one?

You will see the large colored rectangle that has confined the PA (Price Activity) for several days. The top and bottom of the rectangle represent the top and bottom of PA......the PA range for several days.

The "range break" refers to the PA moving up thru the top of the rectangle.....breaking up out of the range.

At the HL I added half of the amount of the new entry at the L. I now have a trade size easily divisible into thirds. I was planning to add another 'half' amount, making the trade easily divisible into fourths.

I am waiting to see if they drop it back into the EP Zone.....

Understood! thankS!

G/U: retracement entry. Let's see how far. (In picture there's a small mistake in wave count:HL instead of LL)

EDIT: SL hit

be careful. the EURUSD is bullish. GBPUSD always has the same direction with it.


Am I right? everybody?

Not necessary. The dollar is weakening right now, therefore both pairs
are going up. However, cable is showing more weakness than eur'o.

EU Watch, Long Trade Update:

I added on the dive to/thru EP Zone. The SL is raised again, so that I have protected 50 pips profit on my averaged entry. Once PA is driven above next higher half number, I will raise SL to lock in 100 pips profit.

By the look of the first H4 chart, PA may eventually, after some swings I imagine, convert resistance back into support. We may be seeing the beginnings of an H4 SonicR long trade setup! If so, this trade will be running into next week and beyond. In such senario, PA might become extremely volatile while traversing the S&R area. Once the idea spreads, position building could be difficult, and whipsawing, even gapping may be employed. My SL remains mental while at computer, and I may change it when away from the computer.

Look at the second H4 chart with the increased data view. It shows an FR study and possible targets are revealed via extensions. Personally, I like the 424% level so far, about 1,000 pips up. But I have included this chart to demonstrate the use of gaps by the institutional traders (Central Bank trading desks?). Note the gap up and run (between the 262% and 424% levels) just before they torpedoed the price! It is a technique that can be used to create liquidity for position building by inciting traders into the wrong side of an upcoming bigger move in the opposite direction. That is why I say gapping may be used again. If this is slated to go higher, then at some point we may see a gap down.....it is kind of like cheating on a whipsaw move.

A final note. If indeed PA starts to run higher. greed may make it more difficult to decide where to take profits. I have set TP1, and so far I am determined to stick to the plan. But afterwards (assuming PA hits TP1), I may vacate all but a small portion, and use the vacated funds to trade swings in both directions. This would be a form of money management. And this is an area that comments and other opinions are always welcomed.

EU Watch:

Here is an interesting chart.....

PA has ranged exactly the average range. Instead of letting it go higher, the institutional traders reversed it at RgH and are using the pip range back down to nearest significant S&R for long position building......hence the Bull Flag is occupying that range area. For definition, see http://www.stockstoshop.com/flagsandpennants.htm

Edit: Added chart showing previous ranging, and the range breakout (and re-test) on a nice upward series of H/L PA waves.

Hello,
Can you tell what does this formation mean?
Thanks

Thanks M8

EU Watch:

Another interesting picture.....

The last pullback from the previous run up, was about 50%. One might expect a future run to at least the FR 162% expansion level....around 1.2300, 200 pips up from current PA.

This might be the game plan for tomorrow.