Dislikedplz, low below dragon : the candle of Low must close below dragon? or if it just give shadow below dragon that's enough?Ignored
EVERYONE, no matter whether they have read thru this thead already, or not, should revisit Post #12. Not only read it again, but REFLECT ON IT! If you do, you will realize that Sonic does not say the candle must close outside the Dragon.
For longs, he says, "Look for the candle go above upper white line and wait till the candle ends...and put the "Buy stop" few pips above the "High" of that candle."
For shorts, he says, "Look for the candle go below lower white line and wait till the candle ends...and put the "Sell stop" few pips below the "Low" of that candle."
Where in Sonic's instructions do you see anything that even remotely suggests that the candle that breaks out of the Dragon must close outside the Dragon?
Folks, the Sonic R Sytem is a very simple method. There are very few "instructions". In fact, I believe the instructions can be boiled down to just these six-
1. The WAVE must show HLs/HHs for longs, LHs/LLs for shorts.
2. To enter, the Dragon must be angled up for longs, down for shorts.
3. And it is best that PA be above the Trend line for longs, below for shorts.
4. Wait for the candle to break out of the Dragon, and place your entry order a few pips beyond it.
5. Place your SL just beyond the start of leg #1 or leg #3 of the WAVE, and move to BE+ as soon as possible.
6. Place your TP(s) according to historic S&R.
Now, regarding instruction #4, ddaytrader and Basber have added some food for thought. Ddaytrader suggests that a trade not be started if the entry falls more than 20 pips beyond the outer line of the Dragon. In contrast to this, Basber likes to be sure that PA has cleared significant highs/lows before making an entry. In otherwords, while Sonic has provided clear instruction, some traders make adjustments to make this method more suitable to them.
Regards and Happy New Year to All,
-TAH