Sonic R. System

EU:

Asian session trading shows a bearish bias. At the open, price was traded down towards Friday lows, but then pumped back up. At the end of the pump, a very high volume selloff occurred. Currently, the price is being pumped back up again.

Today might be more of the same, pumps to dump. But even though the asian session has created lower HLs, when the euro traders come to the table we may see pumping action that takes price to new highs, maybe to above the upper whole number, and possibly a quarter above that.......all in preparations for more downside.

So, we could see a SonicR long setup for a euro session pump, and maybe even a SonicR short setup later in the day. This is all speculative, of course.

GU:

Initiated a long trade. Made an early entry based on high volume at bottom of drive down. Like EU, this is in down trend. But the high volume might indicate a base is formed for a pump up to prepare for the next downside move. Based on the volume, the pump could be enough to be traded.

This is not SonicR, but I'll add at a SonicR long setup EP. A rectangle is placed where the EP could be established. This is speculative. But the high volume "basing" is about the whole number, so the PPMs could mount a modest counter trend move to gain higher ground for adding shorts in preparation for the next move down..

Edit: Added 2nd pic. SonicR entry made and TP set.

Hi Sonic,

I just started this thread. Is first page has enough document and setup information to start with or there is some other pages too as summary so that I can start with that.

Thanks.

Welcome, 786 trading. I am not Sonic, but I'll reply for him in his absence.

Yes, read the first post and all its included links and material. That will give you the foundation of information of the Sonic R System. Afterwards, start reading the thread. It is the course in SonicR, as it has lots of examples, etc.

Regards,
-TAH

Hi all,

Please help me to point out what I did wrong.

Thank you.

TraderViet,

at least:
1) trading time ! (c'mon, it's Monday Asia session...)
2) after "signal candle" you must wait for PA retrace to form the wave, after this put your stop order few pips under/below "signal candle"..

Thank you Odges,

1) trading time - When I made the order, that's late Asia Session - But maybe you're right, this is Monday
2) Can you explain more about PA retrace to form the wave? I think that's a good signal of SonicR (more risky of yellow SonicR Trendline, but most of time, I see this is not very important)

Thanks and Regards,

TraderViet.

Sometimes the asian session PA can indeed be the start of a good run. But in this case you can see from the volume study that there was a lot of selloff volume going down to todays lows. By contrast, there was no volume in the WAVE setup process for a long side move!!!!!!!

That alone should have warned you. Also, the trend is down, both Dragon and Trend lines confirm the trend is down.

Finally, by your own CCI study, IT HAS NEVER GONE TO THE POSITIVE SIDE! If you are not going to look at, and use a study, why have it on the chart?

A long trade would be a counter trend trade. Before you engage in such, be sure you see heavy volume activity coming out of the lows, not only during WAVE construction, but also at most recent previous lows. If you are going to use the volume study, this is how you use it. The CCI should also be going positive during the WAVE, or at least during the EP breakout. Your entry should be beyond the breakout candle high.....and give you time to see the CCI is indeed positive. If you are going to use the CCI, this is one way you should use it.

What you have just experienced, now makes you a better trader. Just don't repeat the same mistake.

Regards,
-TAH

Thanks TAH,

I just analysis the wave but forgot the volume.
One more experience for me. Analysis Wave and then Confirm by Volume.
Thank you for your help. Learn so much from each Failure.

I placed two vertical black lines at the LOWS of the WAVE construction. Do you see any above average "buyers activity" at either?

Volume, when used in conjuction with the overall PA, WAVE and DRAGON can give strong clues. In this case there was a complete absence of interest at the lows for buying in preparation for a run up. In fact, the most recent above average volume is, again, associated with another selloff/run down in the price!

Regards,
-TAH

EURO Market Outlook:

So far this session, regarding all currencies paired with the euro, volume is higher on downside moves and lighter on upside moves. In other words, the PPMs are selling off heavy when they get the price to the top of their pumps. The volume in the pumps is as light as they can get away with.

The conclusion I draw is that traders are Bear biased on the euro.

Regards,
-TAH

Im in gbp/usd long it very risky long

EU:

Doncex, here is a current pic on M1. I clearly shows most trades are at the highs and on the selloff from the pump to the highs (see red dotted vertical lines).

Good morning guys.
There is a consolidation range. Better to wait for a brakeout.

GU Short
Retraced well. Decreasing volume around Trendline 200.

40 Pips profit on this SonicR long trade setup. I entered at EP of 1.5518, and also an early entry at 1.5508 based on bounce off whole number support area, for an average EP of 1.5513. I moved the TP down 10 pips to 1.5557, for 40 pips profit on the average entry cost. See attached pic.

yah its consolidation, plz could u say me, what price u put ur pending order...

EU:

This could be close to breaking out. Yes, a tight, but still valid WAVE. And price is very near EP zone, just below the half number. Highest volume is on the run down from highest high, indicating a selloff.

Hi! I wish volume in metatrader would be so reliable. unfortunately is just the volume of the broker's clients' portfolio. I use the future's volume (VSA) to see the actual volume in the game.

[quote=Martingale;4254194]Hi! I wish volume in metatrader would be so reliable. unfortunately is just the volume of the broker's clients' portfolio. I use the future's volume (VSA) to see the actual volume in the game. [/quote

Yes, I have frequently reminded readers that the "volume" is only of the activity thru the broker's server. And also, that it is only the count of individual trades, not the size of them!

All the distributors of forex "volume" world-wide refuse to disclose trade size, and with the count of trades just being of the activity thru the individual broker's server, one might think "volume" to be an unreliable indicator.

However, this is not so. A spike of activity in the market is going to show up as a spike in activity on all broker servers. That is just the way it is. And so if "volume" is watched for indications of increase in trading activity at highs/coming down off of highs it clues us to the fact that traders are predominately selling. If "volume" is watched for indications of increase in trading activity at lows/coming up off lows, it clues us to the fact that traders are predominately buying. And "puzzling" volume activity can frequently be cleared up by viewing the activity down on the M1/M5 charts to see if during a bar (example: M15 TF bar) whether the highest volume was at the highs or lows during that TF.

In other words, individual broker server volume data will fluctuate proportionately with the market along with the volume data on all other broker servers. And it is the relative change in the activity that is important. And all broker server volume data will show that relative change in activity. The fact that the "scale" differes from one broker to another is totally unimportant. Remember, we will never know the size of trades, so it is the scale, the "...actual volume in the game..." as you call it, that is misleading because it isn't the actual volume of money "in the game" anyway! But changes in relative volume are NOT misleading, no matter what the "scale" is, because it reliably shows us when traders activity is increasing or decreasing.

In conclusion, the MT4 volume data can be used with confidence, and to great satisfaction, if the user knows how to use it together with the price action.

Regards,
-TAH

Edit: (You gotta love those folks that drop in from elsewhere to sell their ideas, and then disappear....gotta do what we can to educate them, so maybe some day they will see the error of their ways.....all out of love and caring.)