Sonic R. System

My Week With SonicR:

Opened and closed 12 trades. 4 lost 60 pips. 8 gained 267 pips. Total pips gained are 207 (gross, before spreads on the 12 trades). All posted real-time here on the Sonic R. System thread.

Sir I would appreciate if you kindly express the times at which you put on the trades i mean your trading session Time.
In fact I am a part time trader and I can only manage to execute the trading session from 1630 to 2300 Hrs (GMT +5).
I am facing the difficulties as i am continuously missing the profitable trades while executing the losing trades. I started the live trading on sonicR since 24 Sep 2012 and have lost 7.4% of my equity.

Firstly, sorry but I cannot get your picture to copy, so it does not appear here and folks will have to refer back to your post to see what you are talking about.

Please, do not just assume a strong red/bear candle and an associated tall red volume bar means that the price will then go "north", as you said. The price might just soon cease to go further down, and move sideways for quite some time before going more in one direction or the other. In other words, you could just be looking at "stopping" volume.

Don't take what I'm about to say as gospel, but let's consider moves logically for a moment. Assume the market has already loaded up shorts at some higher price, and the price has been really dropping. One would expect at some point the market is going to start closing those shorts, which would entail a lot of buying activity. This could result in a long red candle and an associated tall red volume bar. This could be the "stopping" volume, with the end of the price drop near at hand. Sometimes that is all there is, meaning the market has shorted, closed for profit and has nothing more to say at the moment. At some point, right away or later, the market may decide to reverse, be bullish and load up on longs. This also might entail a lot of buying activity. This could result in a long green candle and an associated tall green volume bar. This could be "starting" volume, beginning the price ascent.

It would be nice if things were so simple, so easy to spot the near end of runs with tall red candles and volume bars, and the starting of price ascents with tall green candles and volume bars. But, alas, the market is never so accomodating. For one thing, if the buying associated with closing the shorts starts at/near the bottom and drives the price up from there, then the candle and volume bar will be green! And "starting" volume might be a red candle/volume bar, caused by the market diving the price as their maneuver to go long/do heavy buying. So, the colors take second priority to the location. If tall candles/volume bars occur after somewhat of a run down, it could be "stopping" volume, whether red or green. And if price has been ranging awhile and suddenly there is a tall candle/volume bar, it could be "starting" volume, whether red or green. But with this latter case, you have to wait to confirm which direction PA is taking, because "red" could mean PA is going down or up, and "green" could mean PA is going up or down! The market does not make things easy for the sheep it intends to at least fleece, if not butcher.

In the final analysis, tall candles associated with high volume are significant events, but not to be immediately traded. It is wiser to be patient and view follow-on PA. In that manner one might more assuredly say, for example, "The market put in a strong bottom." and have more assurance in a subsquent Sonic R. long setup. In other words, we use price/volume information not to immediately trade, but to wait and confirm what the market did; to get a sense of what the market sentiment is. And then we remember that information when the next Sonic R. setup forms. Is the Sonic R. setup and last confirmed market sentiment compatible?

For example, suppose a strong bottom was made (tall candle and volume bar, either color), and price then went sideways. We might assume the market closed shorts. No longer bears, but neither is there a sign the market is bullish. Suppose later we see, during ranging, a tall candle/volume bar. Either color could mean either direction, so we need to see what that direction is. But it is a sign that either the market is loading longs or loading shorts again. We won't know until later which it is. And meanwhile, PA might give us a headfake, a false Sonic R. setup that starts and quickly reverses. Unfortunately, there is just no way to know in advance. If the setup runs, fine. If the setup reverses, hits your SL, fine too, because now we know the true direction and the run is real because, after all, the market did load up didn't it? This is the nature of trading. And the bottom line is, trade what you see, and be quick to react to PA reversals if you have already noted that the market prepared in advance for a run. You know there is a run coming because you saw the tall candle/volume bar suddenly occur during ranging. You just had to wait for the market to show the direction, and unfortunately you maybe had to suffer a headfake before the market revealed the true direction.

To summarize, the end or near end of runs (up or down) can be associated with tall candles and volume bars, i.e., "stopping" volume. The beginning of runs can also be associated with tall candles and volume bars, but the direction of these candles does not have to be the same as the direction of the eventual run. We must wait for the market to show us. And this is a time when the market might employ the head fake strategy to sheer the sheep for more profits. Too sad, but that is the way it is. The good news is if high volume preceded a Sonic R. setup that reverses, then the odds are greatly improved that market has finally shown it's true sentiment and the game is still afoot.

For all Sonicers questioning how to use volume, I hope this helps.


-tah

Sir, all you have to do is start at the first of the week and scan the posts. Every trade was posted real-time and later posted when closed, including the link back to the previous post on the trade. It is already all there for you to view and analyze.

Regardless of when I enter trades (sometimes before or after the LS) the recommended trading interval each day is the LS (3am EST to noon EST). This is when the most trading activity exists, which is important in that moves tend to be more sustained than outside of the LS. Moreover, if you go back on charts you might conclude that it is best to wait 1-2+ hrs. into the LS before biting on any setup, and 1-2+ into the US session (starts 8am EST) before biting on any setup there. Why? because of late it seems setups have their best EPs after a while into the LS or the US session, not right at the beginning of the sessions. I hope this helps.

Yes. Too much "stuff" on your chart. You entered short at tail end of LS with PA just above strong support. In any case, when PA reversed, so could you have (advice I myself need to work on).

931? 920? 890? Is it too much to ask that the prices be complete when stated? I mean posting is for the edification of students, examples of trades as it were. And they don't have time to decipher such nonsense. Please spell it out! Also, and in the same vein, your charts have a lot of "stuff" on them, yet they are without clear indications of EP, SL and TP(s). Why bother to post at all if this most important information is excluded in favor of a bunch of other "stuff"? Such is of no value to students of the Sonic R. System. A picture is worth a thousand words, or so it should be. I can only suggest you re-think your template. Simplfy. The meat of the Sonic R. System is in PA, the Dragon, the Trend, a bit of volume, and an understanding of support and resistance. Focus on these things. Discard the rest.


-tah

i used have all of sonicr indis on my chart, and then carefully followed master sonicdeejays posts and other senior contributors on the thread, most of them throws "SR/SD and PA is the key", with that i started eliminating indicators that imho doesnt have anything to do with my trading.

i started with the dragon reason, if you noticed most entries of the main contributor here doesnt follow the rule of the angle of the dragon in correlation with 89 ema.

then the vsa, honestly i dont understand how to use it however i tried to gather info re: that indi, i just knew the activities are there when the bars are rising more than its regular height so i just trade on london and us sessions.

then the ffcalendar, etc.

i enter the market aggressively (using masterhans FE tool) meaning i dont wait for the 3rd leg of the setup to break the 1st leg. or sometimes when the start of the 1st leg hits the SD/SR area. i simply identify SD/SR areas and watch how PA (H-L-LH-LL)'s reacts on it then i shoot my EPs and manage TPs.

f.

This was a classic Sonic R. System short setup. London session, good PA wave, Dragon angled down, nice volume bar just before the start of PA wave leg #3, and EP at/below Trend. in fact, there was good volume activity throughout the PA wave before the breakout (see VSA chart below). And so what if there was SR about 20 pips below? Look at the AU chart! You can't find any spot where there isn't SR within 20 pips! Does that mean one should never trade AU? No, of course not! And the run was for a nice 60 pips or so, right down to DS1/RDL.

Support (demand) and resistance (supply) areas are where historically PA paused or reversed. Nobody can know what is going to happen the next time PA gets there! That is to say, support might not remain support but become resistance. Which is what happened this time. PA hit historic SR, bounced up, attacked again and got thru, went back up and backtested the area which became resistance. And then PA fell! Understanding all that is possible, and what is probable, is what is meant when we say that with the Sonic R. System you need PA, the Dragon, the Trend, a bit of volume and an understanding of support and resistance. In this case, the Dragon and PA clearly showed the way, as Master Sonicdeejay would say!

The Dragon is a key indicator in the Sonic R. System. Without it, you are not really trading the Sonic R. System, but something else. There are plenty of examples of excellent trades from which you can see the significant contribution the Dragon makes. If you don't use it, don't use as an excuse that somebody else has sometimes entered a trade without a proper Dragon configuration. Firstly, that is not even logical. Secondly, it belies the value of the Dragon.

VSA is a display of volume that highlights when volume rises above the average volume, and when volume is particularly strong due to the combination of high volume and wide candle spread. It is just a way of showing when/in what price range trading is particularly active. It is not a signal to trade, but rather a clue to market sentiment, which is best confirmed by follow-on PA and used later in conjunction with the next Sonic R. setup.

The FFCAL indicator is to give a "heads up" regarding important upcoming news releases. It lets you know which ones are coming, and when, so that if a trader is in a trade, they can manage to get out beforehand. Or, if they were planning on getting into a trade, they can hold off until after the high volatility that usually accompanies such releases subsides.

The Sonic R. System is a unique way of trading PA movement between SR areas (or demand/supply areas). There are other ways, to be sure. But presenting and demonstrating the Sonic R. System is the purpose of this thread. And the reason this thread exists is because Master Sonicdeejay has it in his heart to help others. That is the reason I am here, too. Do I err? Certainly. And throughout this thread there are both bad and good examples of folks attempting to correctly apply this system. Both are good for the edification of how to apply the Sonic R. System; what to do and how it comes out, and what not to do and how it comes out. Thru it all, the Sonic R. System is constant, an elegantly simple and transferrable method of trading this forex market. And this thread is best served by folks posting in accordance with the Sonic R. System, and not something else. We all owe at least that much to Master Sonicdeejay.

-tah

Thanks for the explanation. Appreciated. I like Master Sonicdeejay's system because it's simple and effective. It's very kind of him and you helping figure out how to use it on a daily basis.
Even a novice to FX, can touch & run and hopefully be successfull with this system. Personally, I think it's an excellent framework. As a framework, it should be adapted...and we are not all the same when it goes to trading. I spent more than 1 year trading only the eur on a 5min naked chart. It was difficult but worth the time I spent on it. The market doesn't care about indicators (they are out sync most of time in my personal experience), it's just about the PA. For example, if someone is dumping USD massively...who cares about indicators ? Going back to the template you made I really like it. I like the FF cal because it's useful to know about the big news etc, I like the info about the spread, candle, VSA. I like the dragon because a good indication of the trend going on. But sometimes, there are good opportunities out there and it's just the PA .... It's "erai" (it's a japanese expression meaning you are noble) you make it available and provide support without taking a cent. I don't desire starting a discussion about this topic or we can talk peacefully with the objective to make a constructive one for the benefit of all. In my trading experience, I learnt that to be consistent/successfull/not loosing money in this tough business, one of the thing we should do is respecting the others especially when it goes to trading. We are not the same and this is great so I respect everyone's vision/methos because I know everybody here is making efforts to bring home pips. Being to strict (I'm talking about this thread, I was in thread much more strict before) is not good for anyone because this market is always changing and we have to adapt ot it.

good stuff in here, subscribed

umbro, thank you for your considered reply. I fully agree that the market is not consistent, that even day to day we face what we don't know is coming; gentle PA, radical PA or anything in between. And I fully agree that traders are not robots, all adhering to what is the same. We have different personalities, preferences and temperments. However, please do not lose in all of this the major point, which is that this is the Sonic R. System thread. It was started by Master Sonicdeejay for the sole purpose of presenting and then demonstrating the Sonic R. System, and not anything else! Those dedicated to the Sonic R. System understand that the thread can become a clearer, crisper manual for the Sonic R. System for all who want to learn, but only if "extaneous stuff" can be kept out. I have no actual count, but I bet the count is high, of other threads started that went by the wayside because all manner of "stuff" crept in without challange and caused the thread to become diluted and ineffective as source for others seeking a straightforward trading method. No true Sonicer wishes this to be the fate of this thread. Unfortunately vigilance is required. It is not a pleasant task and I am happy when other Sonicers speak out against infractions. When I, or others do, it is not to insult or anger but to try and put across this important point in the hopes others will come to appreciate and comply, or if they have a really good alternative method that they start their own thread accordingly, and do what Master Sonicdeejay has done; present it and lay it all out for others to learn, and continue to demonstrate its application on an on-going basis. And in this manner, folks can go to the thread presenting the style of trading they think best suits themselves, and have no confusion or dilution to contend with.

Because this is important, I want to speak about your statement that the Sonic R. System is a "framework", as you put it, that should be adaptable, or flexible since traders are all different. This is precisely the isssue, but the Sonic R. System is not a framework. It is a specific trading system. An elegantly simple, effective, unchanging system for trading. Does it suit all market "conditions"? No. Does any trading system do that? No! It is simple logic that if a trader wants something to suit market conditions when the Sonic R. System is not showing a good setup, then the trader should find that other "something" to use, but not attempt to change the Sonic R. System to try and make it what it is not intended to be, or to make it do what it is not intended to do. For example, if PA spikes up and the considered odds are good for a move down, and the trader wants to enter a short higher rather than wait for a Sonic R. short setup, fine. But such an entry would not be considered a classic Sonic R. System trade. It should not be called one. And if the trader is set on making that the sort of trade they normally do, rather than classic Sonic R., then perhaps a new thread for that trading method should be started by the trader.

-tah

ok, I understand your point. Thanks for having took the time to explain it. umbro

EU Comment:

Here we start a new week. PA is moving back up into SR zone. From there, up or down? I figure down, but PA in the LS will likely tell us which way. Currently, VSA is showing higher activity now that the price has been moved up, so this could be a sign the market wants the price high for shorting. We'll see.

GU: Entered long. Like EU, PA has been moving up to an SR zone, and higher volume at the highs could mean the market wants higher prices to resume shorting. Might mean this goes up to at least the main pivot.

I took this trade at LO open. EP is 1,28536. Let's see. It's a classic Sonic setup on the 5m.

BTW, correct me if i'm wrong ... please.

EU:

It was a setup on M15. You didn't need to drop to M5. What you should do, however, is show your SL and TP(s), maybe something like in my pic. Otherwise the trade plan is incomplete and of only partial benefit to future students that view your trade.

ok. My SL is mental, I'm going to lower the load at 1,2737 and then 1,28837 and leave the rest on the table. I cannot post another chart. I'll do next time as required. Thanks

Confusing. What is your mental SL, and what are your TPs?

Tp1 is 1,28737 and has been hit. Tp2 is 1,28837. SL is 1.28357. I'm sorry I cannot post a chart.

sonic M5 entry long closed already @ 1.2865, now being cautious on long pos. but i could be wrong. now hunting for sonic short entry.

f.