Sonic R. System

Happy Birthday!! Your birthday and my wifes are the same. Yes that is good. LOL

GBU

Hansma, first, thank you for your expression of concern and for your analysis.

The Monthly chart shows PA in a major SR area, which has withstood a number of penetrations from both directions historically. It is highly unlikely that PA will simply travel on down thru it. Typical PA behaviour is to strike at a SR area, rebound and then attack it again....if the BBs intent is to eventually get thru it. So, a rebound is likely. And just a typical FR 50% pullback on the run down on the Daily chart puts PA back up around 1.2900.

The Weekly chart shows the retrace from the significant high is at the very important FR 79% level. Unless all the market Big Wigs are Bears, the Bulls are undoubtedly going to fight here. And obviously they can't all be on one side of the trade, or the market would come to a screeching halt (which would also stop the price here)! Also, Supply and Demand areas are created by the placement of large orders by "institutional" trading concerns. As such, they change as quickly as those institutions place and pull their orders. Thus, these are "fabricated" areas, subject to the whims of the BBs. They are not "cast in concrete" on our charts. What you peceive as an area of no demand can suddenly become one!

And this gets us down to a trading TF chart to see what the BBs are up to. The M30 chart shows heavy trading at the bottom on Wednesday. It shows heavy trading at the bottom on Thursday. And Friday (today) is interesting because it shows heavy trading up from the range by the early London session BBs, with trading tapering off at the highs. This is most likely buying intent heavy trading, which is why it was heavy on the upside and tapered off when the highs were reached. Also interesting is the sudden spike down after the US open, a spike down followed by higher trading at the lows achieved. So, this is most likely buying intent also, which is why the heaviest trading was saved until after the price was manipulated lower. And, the market left the price low, which will serve long buyers well when the new week opens.

Taking all this into consideration, a "Demand Zone" is already being created in the 100 pip range the price was worked down to three days ago. Another thing to consider is why this might be. The current run down on the Weekly chart last started around 1.3500, a thousand pips ago! The BBs are far more likely to be taking profits at this Monthy SR area now, than to risk losing profits by continuing to hold them. Closing them will take days and involve "buying to close shorts" trades. All that buying is why we are seeing a "Demand Zone" being created right now. And the demand will increase even more if the BBs don't just take profits on their short positions, but also start to build long positions in anticipation of making a "rebound" move up off this Monthly SR area.

In conclusion, PA is at a historic "hit and bounce" area. Price should bounce. And the BBs have big profits tied up shorting this last 1000 pip run down. If they decide to take profits (VSA suggests it is happening), they are going to have to do a lot of buying. Price should bounce. And typical and reasonable retrace/bounce would be in the order of 50% or more, so a bounce could be very substantial. Not only that, a bounce could be very profitable for the BBs if most do not even expect it.


-tah

Hi,

Can you tell me where can i download the indicators who are on the chart at the post #35398 please ?

Thanks a lot ! ;-)

I'm in no way looking for a holy grail that guarantee profit. I'm in the game long enough to understand it a little bit. I'm just looking for wise words from someone who are experienced.

What you said is true. I'll keep on staying disciplined at all time.

Thanks

Hello sonicers, am a bit new sonic system, Though have tried to read thru sonic manual and post on forum as much as possible, but I Have This question. Do we enter trade based on sonic setup before a HIGH IMPACT NEWS release or do we wait after the news release before we get into trades based on sonic setups. Thanks for the reply..........in advance

From my experience, I usually close my trade before High Impact News release or adjust for a larger SL to avoid whipsaws.

Thanks for your quick response @ Immvp. But what do you think of setups generated during news or after news release ??

Hello Traderathome, First I want to say a very big thank you for your generous contribution towards the success of Sonic system. I just need your view as regards sonic system and HIGH IMPACT news (CHOPPY MOVEMENTS AND HIGH VOLATILIY). Whats your take on this, how do you manage sonic setups and your trades on such days ??

Hanncy, the way Immvp stated the handling of "news" is most reasonable. Sonicers do not "trade news", which is to say we do not enter a trade based on what the "news" is anticipated to be and what the market reaction to the "news" is anticipated to be. Even if we knew what the "news" would be, nobody can know what Big Money in the market is going to do with the price after the "news" comes out. Price might move logically, or illogically,.....whichever way Big Money makes it go in order to screw the herd and make more profits.

A SonicR setup happening coincidentally with "news" is simply just a SonicR setup. The impact of the "news" can have two effects: 1) sudden high volatility, with or without whipsawing, and 2) sudden reversal, with or without whipsawing. Most of the time the direction indicated by the SonicR setup will hold true, but not always. And frequently whipsawing occurs sometime after the "news". So, more often than not, it makes sense to continue an open trade in the direction of the SonicR setup, but with a wider SL to accomdate possible whipsawing.

Ideally, no trade would be open prior to "news", and would not be opened until after an appropriate amount of time to allot for whipsawing has passed. And frequently moves at "news" are fully countered later; within a few days, or within several sessions, or even within several hours. If a Sonicer is looking for a low risk trade, maybe not trading around "news" at all makes sense.

-tah

Clearly understood. Thanks @ Traderathome

Also I have some few questions about the the TAH templates. I found out that the cci, stochastic and the macd used from the start of sonic setups for confirmation are not in the TAH templates and they have been replaced with VSA. Is that to say we just need the dragon,wave and PA for our trading deci ssion and sonic system does not require any of the old indis anymore. Sonicers please explain.??????????????

dotless, some experienced traders use lots of indicators, and as Hansma stated, some do not. But they all use their minds.

Master Sonicdeejay started the Sonic R. System knowing that successful trading can be accomplished with, or without, lots of indicators, but not without the proper use of the mind. His purpose is to present an approach to successful trading that is so straightforward it can be adopted by any trader with the least amount of difficulty. In otherwords, it is a highly transferrable method, successful because of it's elegant simplicity.

Most folks coming to the SonicR thread bring with them their own sack of "baggage", countless ideas and indicators they've collected elsewhere, and then proceed to marry them with the Sonic R. System. What they end up with is not the Sonic R. System, which encourages the development of the mind of the trader, not the use of more indicators. And the development of the mind is focused on a growing understanding of how price moves between historical support and resistance, and how that movement can be traded with an easy-to-see setup, primarily during the London session because that is when the most money in the market is active and therefore that is normally when "moves" are the most substantial.

The Sonic R. System is a "Take it, or leave it, but don't mess with it!" proposition. The less a trader heeds this, the less successful the trader will be applying the Sonic R. System and developing the trading mind accordingly.

-tah

You need to read more and ask fewer questions. I suggest you read the latest Sonic R. System Summay linked in Post#1.

Howdy Fellas..



Sonic

Sonicccccc

It's late, it should be bed time for you by now..

I'm feeling scared, Sonic

Afternoon Guys and Girls.

Well been on a 12 mile run, back and burnt very hot today.

Who sees a gap up at the open on Sunday ?

I am just back from Sun Down Marathon.. Cheering for Mrs Sonic..

Sonic

I see a gap down below 1.250x .

Sonic