Sonic R. System

GBPUSD:

I entered a SonicR long trade yesterday. But should I have called it a SonicR trade? I entered just minutes before the approved hours....not a big deal, right? WRONG! Had I waited just one hour into the approved hours span, the Frankfurt Open traders would have given me a clue that maybe "long" would not be such a good idea. And had I waited still more to see what the London traders would do, an hour into their trading would have confirmed it!

Several times of late, I have found myself saying that I should just wait for the London Open.....see what those traders do.....before trading myself. I think I will give that "adjustment" a try. It could have saved me the 32 pips loss I took when getting stopped out of my long trade.

Here we go again. Here, like yesterday, is another SonicR long setup, but before approved hours. But something is different this time. This time, PA previously made a mad dash to the lower half number area and drove hard up to the whole number area. Since then, PA has twiice dropped and risen back to this whole number, with the drops not making back down to the half number area. This is bullish.

So, I am taking the higher risk early trade......again.

Let's go back to yesteday's SonicR long trade. I blamed the failure on the ever-so-just-early entry. But in the back of my mind, something would not rest. I have been looking at that trade, and I have discovered why the trade was bad. It is obvious from the chart. Can you see what I did wrong? ..............(look at the chart and think a bit before you read the answer.)

Here is what I did wrong. Out of greed, I set my EP to an earlier PA move out of the Dragon, and not the move out of the Dragon scribed by the first leg of the WAVE. Had I set my EP at least several pips beyond the high of the first leg of the WAVE, the SonicR long trade would never have triggered! The next move up/past that high only went two pips further; not enough to trigger the trade. And since the trade would never have been, I would not be down 32 pips!

It is times like this that I can only reflect in awe about Sonicdeejay's wisdom in setting the few, simple ground rules for the SonicR method. Greed got the better of me. SonicR performed flawlessly.

There is no hard and fast rule that EP must be defined by the first leg of the WAVE. It was an appropriate pick for the trade because the WAVE was directly overlaying the Dragon. I should have picked it. There is nothing in the SonicR rule book about arbitarily looking for some earlier PA level to choose for an EP.....definately not SonicR no matter where the WAVE is! It is a lesson for me, which I hope also helps others.

Basber is real good about not being pip greedy when placing an entry; seeming almost always looking for PA to surpass not only the SonicR EP, but will wait some more pips if necessary for PA to clear neaby S&R levels. That would have worked perfectly on this one, keeping the trade from ever triggering.

PA has the look of consolidation now; PA staying in a small range while professional traders build their positions. It can be a sign they are expecting a move, and that they are getting rid of what will lose them money, and getting what will make them money. It takes time.

When the euro traders come on board, they may start doing the same thing. However, a spike out of the consolidation area might give a clue as to which direction everyone is expecting PA to go. If there is a spike down, then it signals a move up. If there is a spike up, it signals a move down. I remark about it this way because a spike during consolidation usually means some outfit is looking for a better price to add to their positions.....that would be in the opposite direction from where they are expecting PA to eventually go.

Anyway....
Let the market decide. Trade what you see.

Beautiful call pipoca, BRAVO!

Odges is absolutely right. That was a beautiful call, Pipoca!
I should have paid attention. That was a MIB (Money In The Bank) trade, as ddaytrader would say.....a stab down to the whole number and a very strong drive back up and higher.

Yep, a great call, Pipoca! (while I was farting around with indicators....)

The Frankfurt traders are moving PA upwards. There are only minutes to go until the London Open. And there is a high impact GBP release in about 1.5 hours. If this continues upwards to the release time, could it be consolildation again for a move down when the USD high impact release hits?

For now, both the Dragon and Trend Line are turning upwards.

Hello Tah,how are you?

I will waith short in gbp/usd pair (15 min.TF)

Looks like a nice wave was in 4h.Tf.?

What is your opinion about gbp/usd 4h.Tf?

I will try to go short gbpusd

Waithing a situation like in picture

American sesion I think shows up,or down...

Doncex, the H4 even at this time leaves me without clear sense of direction.

PA hit TP1 (1st chart). PA pulled back to EP, but could be staging for another run up (before USD high impact release in 6 hours?)....2nd chart.

Ok Tah, thanks for helping understand market and gbp/usd

The trade was just closed at TP2 for 110 pips profit. Pa is still moving up, but it was a good trade.

This might be the next one to watch. Note the PA drop just below the whole number and strong recovery. Since then, ranging. Currently PA is in EP zone and looks to be consolidating. Next move up? EP, TPs and SL per attached chart.

Edit: Added 2nd chart....wow, that start came soon.

I've been following this thread with great attention.
Just love the simplicity of this system.

How many hours do you trade per day? Is the manual still accurate?
I would love to trade only the London/US session overlap, but i don't see too many set ups beginning and ending in that period.

Congratulations and keep up the good work.

Tah you are great,excellent trades you take

You are the golden heart of this forum theme.

Good to see your trades,expecialy your comments about trades-it gives a lot of experience,your are great.
I wish you the best

Just noticed this on EURJPY, Can one consider this a Sonic Setup?

I think so.
Based on my analysis, we have the wave SH, LL, LH, followed by a break of the last low.
So yes, i've gone short on the breakout.

Well guess it was to soon to jump in, since there was the 114.00 Psych level in place.
Based on this, now i'm going to wait for the test on the 89EMA and upper trendline. if broken, i'm out with a loss, otherwise we could see a big drop to 113.35 - 113.25.
My main concern is the correlation between eurusd and eurjpy, according to it, we could be seeing a bullish resumption on eurusd, which will affect eurjpy for sure.
Yet, if a head and shoulders should be formed on eurusd, the trade gains fresh hope.

Well, 35 pips loss.
I need some criticism now.
Problems found in my approach:

1. enter near a psych level;
2. failure to take the loss after the close above the dragon;
3. Supporting my trading decision on correlations (not trading what i saw);
4. Not respecting the trading hours(?);
   
   
   

Any more flaws in my analysis?