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Sonic R. System

  • #23,921
  • Jul 26, 2011 3:21pm Jul 26, 2011 3:21pm
Inserted Video


charting

enigma4x
enjoy my life ... and ride the waves - all what I do
  • #23,922
  • Jul 26, 2011 3:43pm Jul 26, 2011 3:43pm
Quoting kimis
Daytrader, some questions regarding your daily system.

Let say we have setup. PA is above dragon (btw, do we have to look at center or outer line of dragon?) and ROC is below 0 and has just turned up. after and of day we put buy stop higher of recent bar high (how many pips recomended? I usualy use 2 pips). but during new day PA failed to make new high and order was not executed. do we have to remove order and wait for new setup?

how about trailing stop for orders in profit? do you put at the same place like initial SL for new executed order...
If the order does not fill, look to see what momentum (ROC) has done and take cues from that ... I know that is an unsatisfying answer, but it will have to do for now.

If I am entering on a stop, then I will use 1-5 pips or so depending on how volatile the pair is. My broker has extraordinarily narrow pip spreads, so this is easier than it was when I was trading FXCM bucket shop. This is a guide, but not a rule.

I will usually trail the stop using S/R and swing highs/lows. But If I get into a trade and it goes somewhere then nowhere, I will take half off. If a position goes +200 pips, I will try to lock in +100 to +150 on at least 1/2 of that position. This is a guide but not a rule.

Price close above 34 ema = bull bias, close below 34 ema = short bias. Price close above 23emaHigh = up trend, close below 34emaLow = down trend. This is close to a rule, but as always, actual price action and real and fibonacci S/R levels trump any indicator any day of the week, including the dragon.

As far as the EU - this is a "Buy the dip in an up trend" and "Sell the rally in a down trend" strategy. Therefore, with the EU now at new uptrend highs, the signal is not as attractive as it would have been if the EU had pulled back deeper into the dragon.

I bought last night at 1.4417 ...
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Click to Enlarge Name: ddaytrader - EU - DROC.PNG Size: 127 KB
  • #23,923
  • Jul 26, 2011 3:54pm Jul 26, 2011 3:54pm
Quoting aligater
DJ and EU not correlating...for now
^cautions^

aligater
I've been watching the same thing - has me very cautious - closing positions, taking profits. I am a bit fearful of being on the wrong side of a midnight presidential press conference. I wish they'd decide to default or not, so that the market can pick a mood other than confused.

Good share, aligater

-DD
  • #23,924
  • Jul 26, 2011 3:55pm Jul 26, 2011 3:55pm
Quoting ddaytrader
Hmmmm .... maybe ...

Hello Fellow Sonikers!


I have been on an extended break from trading forums, but the lonliness gets to me sometimes.

I am still trading, though I am 100% focused on trend following bigger swings found on the daily chart. I use a system I call the Sonic Pyramid, and here is what my chart of the EU looks like ...

ddaytrader, Sonic Sharer
I tried to think of a pair that has recently been trending on daily and came up with NZDUSD...I don't have the ROC indi up yet but thought I would try to identify some potential waves and entry points/stop losses.

What do you think of these as possible pyramid entries?
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  • #23,925
  • Jul 26, 2011 4:12pm Jul 26, 2011 4:12pm
Quoting ddaytrader
Trading Hint:

There is no such thing as overbought in an up trend, only oversold.

There is no such thing as oversold in a down trend, only overbought.
Yeah, I was not clear in recent post, talking about swissy being benefactor and overbought, and referring to UChf. I meant the swissy was maybe overbought, not UChf, which obviously would be maybe oversold! I've revised the post to eliminate confusion. Thanks.
  • #23,926
  • Jul 26, 2011 4:29pm Jul 26, 2011 4:29pm
Quoting Donkey
I tried to think of a pair that has recently been trending on daily and came up with NZDUSD...I don't have the ROC indi up yet but thought I would try to identify some potential waves and entry points/stop losses.

What do you think of these as possible pyramid entries?
I prefer to enter much closer to the dragon. You have identified important S/R levels, but I would hesitate to initiate or add at those levels.

I think of those levels as "No Fly Zones," as in "those signals don't fly up there."

Don't follow the indicators blindly - you want to be interested in the indicators only when price itself is interesting. Price interesing to me when it is pulling back to the dragon, whether from below or from above.

Here is my daily NZD.USD with a few notes - blue is for buys, red is no fly zones, i.e. areas of price action where no matter what the indicators tell me, I'm not buying it. I hope it helps.

-DD
Attached Image (click to enlarge)
Click to Enlarge Name: ddaytrader - NZDUSD - DROC Sampler.PNG Size: 132 KB
  • #23,927
  • Jul 26, 2011 4:31pm Jul 26, 2011 4:31pm
Quoting traderathome
Yeah, I was not clear in recent post, talking about swissy being benefactor and overbought, and referring to UChf. I meant the swissy was maybe overbought, not UChf, which obviously would be maybe oversold! I've revised the post to eliminate confusion. Thanks.
I got a little confused now, UChf has been in a downtrend for a while now and DD is saying : "There's no such thing as oversold in a downtrend, only overbought"

What I can understand from this is that oversold leves in a downtrend will serve of little or nothing, but overbought levels do apply as useful information as trend resumes its way prior to a correction.

Could this be what DD was trying to imply???
Flp. 4:13
  • #23,928
  • Jul 26, 2011 4:43pm Jul 26, 2011 4:43pm
Quoting traderathome
Yeah, I was not clear in recent post, talking about swissy being benefactor and overbought, and referring to UChf. I meant the swissy was maybe overbought, not UChf, which obviously would be maybe oversold! I've revised the post to eliminate confusion. Thanks.
No problem, TAH. What I meant, my good friend, is this: taking your example, the USDCHF, this pair is in a strong down trend, and should not, so long as that down trend is in effect, ever be considered "oversold." So long as the downtrend is in effect, it is safer only to consider that the USDCHF may become overbought, and to refuse to consider it to be oversold.

The swiss franc has been showing exceptional strength. It is in a torrid uptrend against almost all comers. I am suggesting that traders not allow themselves to apply the term "overbought" to the Swiss franc so long as this uptrend holds. It should only be considered oversold during corrections, but not overbought during rallies.

More money has been lost by the retail trading public selling an uptrending market perceived to be overbought or buying a downtrending market perceived to be oversold.

Does anyone remember the public's unquenchable thirst for shares of Cisco Systems as it plummeted from its all time high above $80 to its low of just a handful of dollars - what was that low? $13? $10? $7? All the time they were thinking "It has got to bounce, it is so oversold it is ridiculous!" They never realized that there is no such thing as "oversold" when a market wants to go down!

Good Trading,

-DD
  • #23,929
  • Jul 26, 2011 5:02pm Jul 26, 2011 5:02pm
Quoting ddaytrader
No problem, TAH. What I meant, my good friend, is this: taking your example, the USDCHF, this pair is in a strong down trend, and should not, so long as that down trend is in effect, ever be considered "oversold." So long as the downtrend is in effect, it is safer only to consider that the USDCHF may become overbought, and to refuse to consider it to be oversold.

The swiss franc has been showing exceptional strength. It is in a torrid uptrend against almost all comers. I am suggesting that traders not allow themselves to apply the term...
Very good point. Thank you.

BTW, check your PM (regarding ROC).
  • #23,930
  • Edited 5:19pm Jul 26, 2011 5:05pm | Edited 5:19pm
Quoting Anthar
What I can understand from this is that oversold levels in a downtrend will serve of little or nothing, but overbought levels do apply as useful information as trend resumes.

Could this be what DD was trying to imply???
Ding ding ding - Yes!

In a downtrend, an oversold reading or level is not a signal to act against the trend. In a downtrend, an overbought reading is a signal that you should get ready to position yourself in the direction of the down trend as it resumes.

Reverse this for an uptrend.

Do this, an it will change your trading and change your life.

Look at Muhammad's post from a few weeks ago = the M15 SonicR longs all set up when the uptrending H4 became over sold.

-DD
  • #23,931
  • Jul 26, 2011 5:25pm Jul 26, 2011 5:25pm
Quoting ddaytrader
As far as the EU - this is a "Buy the dip in an up trend" and "Sell the rally in a down trend" strategy. Therefore, with the EU now at new uptrend highs, the signal is not as attractive as it would have been if the EU had pulled back deeper into the dragon.

I bought last night at 1.4417 ...
That being said, I'm buying more if we trade above 1.4525 (it is at 1.4518 at this moment) ... My stop on the whole thing will be 1.4417. This thing looks like it is ready to go to the 1.50 handle quickly. If not, I get stopped out ...
  • #23,932
  • Jul 26, 2011 5:26pm Jul 26, 2011 5:26pm
Morning fellas,

Here is my take..
As u can see from the chart, 1.451x - 1.457x proven to be a strong resistance..
Price dived back to 1.38xx after hitting 1.457x, last few weeks back..

I see the strong momentum that could break up 1.457x this time around,
However.. We need to be extra cautious with new long position as we are at major resistance..

I am still bullish bias..

Sonic
  • #23,933
  • Edited 6:23pm Jul 26, 2011 6:03pm | Edited 6:23pm
It looks to me like the ROC2_VG posted a ways back displays two lines for the purpose of showing when the ROC line crosses the longer period Signal line, especially in the neighborhood of the zero line.

Anyway, I have coded a new indy for SonicR that allows user to display either both, or just the ROC line. Convention is to make the Signal line red and the indicator line (ROC in this case) another color (blue). So I coded the ROC line to be blue and the Signal line to be red, which is the opposite of the source code. User can easily change the colors for the Zero, ROC and Signal lines. See attached charts. Comments are solicitied from those familiar with the use of a ROC indicator.
Attached Image(s) (click to enlarge)
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  • #23,934
  • Jul 26, 2011 6:12pm Jul 26, 2011 6:12pm
Quoting ddaytrader
I prefer to enter much closer to the dragon. You have identified important S/R levels, but I would hesitate to initiate or add at those levels.

I think of those levels as "No Fly Zones," as in "those signals don't fly up there."

Don't follow the indicators blindly - you want to be interested in the indicators only when price itself is interesting. Price interesing to me when it is pulling back to the dragon, whether from below or from above.

Here is my daily NZD.USD with a few notes - blue is for buys, red is no fly zones, i.e. areas...

Yes this helps. Thanks. So in bullish scenario to buy closer to dragon, once a HH forms above dragon, we wait for the HL to form at or below dragon. Once the HL forms and as long as there is acceptable PA or other confluence the buy order goes in prior to the next leg forming? I think this is something I've overlooked....I was looking at buying once PA confirmed the HH was likely to be taken out, missing a good portion of the move - basically I was looking at getting in at a potential TP area.

So would this look better?
Attached Image (click to enlarge)
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  • #23,935
  • Jul 26, 2011 6:20pm Jul 26, 2011 6:20pm
Quoting traderathome
It looks to me like the ROC2_VG posted a ways back displays two lines for the purpose of showing when the ROC line crosses the longer period Signal line, especially in the neighborhood of the zero line.

Anyway, I have coded a new indy for SonicR that allows user to display either both, or just the ROC line. Convention is to make the Signal line red and the indicator line (ROC in this case) another color (blue). So I coded the ROC line to be blue and the Signal line to be red, which is the opposite of the source code. User can easily change the...
Thank you for your efforts and talents, TAH, you never let us down!

I would suggest that we do not need the "signal" line, and that it could, and likely would lead to needless confusion.

You have perfectly captured the need for and importance of the zero line by removing all extraneous levels except for that one all important level.

I set the period to "2". I am not a coder, so I do not know if it is possible, but it would be great if you could set the default setting to 2 periods.

Awesome work, TAH! What would we do without you?!?

By the way, I sent you a PM.

Thanks a million pips, TAH, truly,

-DD
  • #23,936
  • Jul 26, 2011 6:26pm Jul 26, 2011 6:26pm
Quoting Donkey
So would this look better?
Yes, and you should not underestimate the importance of those pullbacks to prior breakout levels. In fact, when starting with this strategy, I would suggest that if trading real money, then only take those signals that occur as price tests prior S/R.

Nothing worng with using a demo account for a few months to get used to this type of trading on the DTF.

Trade demo to learn, and save your money to try to have a good solid stake to start with when you are ready to go live.

I think too many fail because they start with too little - they trade scared as there is little room for error.
  • #23,937
  • Edited 6:39pm Jul 26, 2011 6:29pm | Edited 6:39pm
Quoting ddaytrader
Thank you for your efforts and talents, TAH, you never let us down!

I would suggest that we do not need the "signal" line, and that it could, and likely would lead to needless confusion.

You have perfectly captured the need for and importance of the zero line by removing all extraneous levels except for that one all important level.

I set the period to "2". I am not a coder, so I do not know if it is possible, but it would be great if you could set the default setting to 2 periods.

Awesome work, TAH! What would we do without...
ddaytrader, the period choices 0,1,2,3,4,5 all yield the same display of the two lines relative to one another. As I input all the numbers to both types, the display of the lines relative one to the other is not altered. I have used the coding for type "2", and that is what is shown in the charts I posted.

Ok, I'll simply modify the code to remove the "signal" line altogether, set the default period to 2, and then post the indicator.
  • #23,938
  • Jul 26, 2011 6:37pm Jul 26, 2011 6:37pm
Quoting traderathome
... I have used the coding for "2", and that is what is shown in the charts I posted...
But it displays an "8" in the output window of the indi. I don't have MT4 on this computer, so when I get to my other one, I will take a look. I know that what I had been dooing, is setting both for "2"

If you set both for "2", does it then look more like the charts I have posted?

Thank You,

-DD
Attached Image (click to enlarge)
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  • #23,939
  • Jul 26, 2011 6:40pm Jul 26, 2011 6:40pm
Quoting alesha77
...I made some good trades based on wave analysis, but got myself in great mess when attemted to add volume analysis...
I never was able to make much use of volume analysis myself, and though I tried it when it was first introduced here in the thread, I gave it up real quick, and I have never looked back. If it works for others, so be it. Youhave to use what works for you.

Welcome, and good luck!

-ddaytrader
  • #23,940
  • Edited 7:36pm Jul 26, 2011 7:25pm | Edited 7:36pm
Quoting ddaytrader
But it displays an "8" in the output window of the indi. I don't have MT4 on this computer, so when I get to my other one, I will take a look. I know that what I had been dooing, is setting both for "2"

If you set both for "2", does it then look more like the charts I have posted?

Thank You,

-DD
Here it is, ddaytrader. The period is the only user input aside from color choices. It is set to a period of "2". Experimentation might be useful on lower TFs such as M15, where a period such as "8", or even higher, might be better?

-tah
Attached File(s)
File Type: mq4 SonicR ROC.mq4   5 KB | 887 downloads
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