EU long on Dragon Breaks..1.308x will be nice..
~Anxious, inexperienced traders obey the rules, wizards master the form....
Watching it like a hawk..Sonic
Translation: Just Follow the Rules
Talk about impatience and not following the rules! Ok, I am not bad mouthing Sonic. Once again his instincts yielded a great trade, and you cannot fault that. But, for the rest of us, what is the message?
Take a look at the attached picture. The "check symbol" represents Sonic's entry long. As we see, the Dragon was angled down and there was not yet a valid M15 PA wave for a long trade because legs #2 and #3 of a L-H-HL formation had not even yet begun. In fact, when leg #2 started construction after Sonic's entry long, it could have ended up being leg #3 of the preceding H-L-LH formation for a short trade! It took the US open to decide things this time, not the London open. And a good EP for the very nice long trade would have been to wait for price to break the half number natural SR zone, which is where the blue horizontal "EP" line is drawn. This was a trade with an easy to spot target, as both the upper whole number and the RDH area coincided with previous PA S&R. And that is where PA has currently stopped, or paused. Time will tell if it goes for another leg higher.
So indeed, the message is to be patient and just follow the rules. Sonic parted from this advice, but fared well anyway. For the rest of us, the trade was perfectly laid out according to the rules, just later in the day.
Personally, I was impatient and entered short even earlier. Unfortunately, I did not set a hard SL and I did not take my profits before leaving the computer shortly after the LO, so now I'll have to wait awhile until price again drops. The Sonic R. System works, and it works very well. It is the trading decisions we make as individuals that cause problems, not the Sonic R. System.
As a side note, I am curious what Sonic is implying with "....wizards master the form...", because this phrase looks incomplete. Form? Formula? Formations? Maybe Sonic will clarify and expand on this. At this point, however, with no further information the whole incomplete sentence, "Anxious, inexperienced traders obey the rules, wizards master the form...." sounds a lot like advising "...you non-Wizards follow the rules, and you Wizards can anticipate highs/lows based on formations relative to S&R and make entries that way". To this I say that at any time, and regardless of PA formations and their placement relative to S&R, the sons-of-bitches Big Money in the markets can at any time suddenly drive price up or down, whatever is opposite what you would be anticipating! So much for "...wizards master the form..."
I await Sonic's clarification of any miscomprehension about all of this. Meanwhile, I recommend just following the rules, be ye wizard or no wizard.
