Sonic R. System

Here can be a possible setup for short ...

http://s9.postimage.org/pbh4bxei7/image.jpg

High volume do not mean the trend is continue. It's why we have sonic R system here . You will see many false setup H-L-HH with a high-volumn-candles break previous high, but price will hit the low after that. That why we also need dragon, and S&R area .

I read Wickoff' books and see this is a good way to trade, but we need to master that, it's like reading candlestick : You will see many many doji in your chart, but the trend do not change.

Great work all , new to this system , been reading through the previous post to try to get up to speed ... .. but im on the way , seeing the success displayed in the present , definitely is inspiring , Thanks guys, & gals..

No movement, with US markets closed due to the Martin Luther King Day holiday, trading will likely remain subdued.

arasheed

1. Stopping Vol (Seller beware, Buyer Patience)
2. Shake Out
3. Nice wave up...

It will be more fun, if US session opens today..

Sonic

Sonic R. System has its own domain...

http://www.sonicrsystem.com ... Just make sure to bookmark it..


http://api.ning.com/files/w43D78vUfa.../fireworks.jpg

Sonic

Thanks for all the info. I'll definitely immerse myself in it. No time like the present to learn
to swim with the sharks!

Here's some stuff I found on VSA that might be useful
and informative for others here.

GU:

Entered short.

Stayed up for several hours into the LS, then went to bed, but with my pending order per the pic. Really, I closed down believing today would be a waste, what with US Presidential Inauguration, US bank holiday, and lower overall volume in the opening hours of the LS. I had entered UCad short, but also had this possibility. Well, it triggered. Surprising, since it seems to be about the only thing that moved today. Don't know why, but it is what it is. Doubt target will be reached today, but one never knows.

Tomorrow should be a day of better price movement in the market. President Obama's call is, "Ok, now let's get things done!" A good thing to say to the market, too.

About VSA & the Sonic R. System

When the Sonic R. VSA Histogram indy was created, it only incorporated the most significant of heretofore VSA circumstances; climax spread-volume situations. And it improved upon that coding to show when the candle was either bull or bear. It was released with a VSA Candlesticks indy that also showed these bull and bear candles, color coded in the same manner. These indys departed from VSA in that "rising volume" code from our previous SonicR Volume indy was also incorporated (with new bull/bear color coding in the next release).

The intent was, and is, to show when there is clear evidence of increased market activity, with both the volume and candles color coded so the user can easily relate one to the other. There was no attempt to incorporate the other "situations" from the heretofore original VSA.

To date, I stand by this unique amalgamation of volume information for forex trading. Forex trading (and forex volume) is not exactly like stock trading and stock volume, for which the heretofore VSA was birthed. For one thing, the stock market has limited "floating stock" for SM to go after. In the forext market there is no limitation on the currency that can be traded (other than you probably cannot have trades that exceed the full amount of a country's currency). For another thing, stock market volume is a far truer disclosure of volume. In the forex market all we have is count of trades for volume, which totally ignores the actual size of those trades! Furthermore, the forex "volume" you see is only that which is transacted on your broker's server. It is not market wide! Nor it does not include "private placement", huge transactions directly with liquidity providing banks that do not have to be disclosed until up to three days following the transactions.

Do not conclude that SonicR VSA is the VSA normally referred to in all the pdfs. available. It isn't. And in my opinion the SonicR VSA, a more simplified form, is superior for the forex market.

The Sonic R. System does not trade on volume alone! In fact, volume is to be used as an "after-the-fact" confirmation/contradicton to a later Sonic R. setup. Our SonicR VSA uses only the most notable of volume situations, as they are the most reliable, but even then volume is to be considered only as a part of what we consider in the analysis of a setup. And when we consider such volume information, we look not only at current volume, but also at volume over the previous day, even days, as a part of the analysis. In this manner, we look to see if there is consistency in what the market has been doing, and if this is also consistent with a current Sonic R. setup.

The Sonic R. System is, and has always been, analysis of price action relative to support and resistance, using both PA waves and the dragon as indications price is ready to move with momentum behind it, and the Trend Line as a reminder of the current trend direction. SonicR VSA is used only to help decipher which direction is it that SM has been most interested in. Keep this following thought in mind. Just because VSA gives a strong indication SM is shorting, for example, that never ever preempts the validity of a SonicR long setup. A SonicR short setup would be nice, but a properly qualified long setup can run just as well. They frequenly do (and the same is true for the reverse situation, obviously). Volume analysis can add confirmation, but the lack of confirmation does not invalidate an otherwise proper Sonic R. System setup.

Conclusion:
The Sonic R. System is an elegantly simple way to trade price action moves between support and resistance areas, using both PA waves and the dragon as indications price is ready to move with momentum behind it. The Trend Line and volume analysis are additions. They are good if they offer confirming signals for a setup, but they do not of themselves automatically invalidate an otherwise proper setup just because they do not appear to be confirming. Sonicers should learn well this core concept of the Sonic R. System and to apply the basics of the Sonic R. System properly. The Sonic R. System is not a VSA trading method! The Sonic R. System from the beginning has, and does stand alone without any volume. Volume became a part of the Sonic R. System due to the fact that it is the only technical that is not a price derivative, and in that regard any confirmation from volume is far more valuable than a confirmation from some price derivative indicator, whch we don't need since we already use price itself. The SonicR VSA, in the fashion of the Sonic R. System itself, is an elegantly simple way to find the most reliable volume indications, for those who wish to use them. As with other features of the TAH templates & indicators such as the Clock, Levels, time zone shiftable pivots. range lines, key market open/close lines, and the FFCal Headlines Panel, the VSA volume is there for users to partake of as they wish.

-tah

EJ: Entered short. This adds to open short positions.

Evening,

Well I am playing a long game day today, 10pm here gonna be up all night with the BOJ conclusions, so do you like me believe its been buy the rumour sell the fact ?

Seems that way with the Distribution since 111.58 by the SM, plus theres a gap down at 111.90.

My target is 110.67

Could be an initial spike higher but I think rest of week this is going short.

Sorry no chart to explain, I am on the laptop downstairs and no Snag It program on here yet as new.

edit- too much gab.


EU- still waiting on that rise. There may be a dip, but I'm expecting a bit of a rise before the whole thing starts trucking south on the mid-term. Then hopefully, I can get the Sonic R system to get me entering at high-probability areas.

I haven't seen a PDF on explaning the concepts on which Sonic R is built. Is there such a thing available? I dl'ed the Sonic R Manual from the first post, but it just explains possible entry setups.

Guess SM took the day off since PA has done absolutely nothing so far but wind up in US. lol

The essence.....
1. H4 candle(s) suggesting a M15 setup to be valid (Secret of SonicR pdf.).
2. Proper M15 PA waves; L-H-HL (long), H-L-LH (short).
3. Good angle on dragon (the steeper the better).
4. Entry when PA is on correct side of dragon and moving at least a few pips beyond end of first PA wave leg #3 candle exiting the dragon.
5. Better still if PA is on correct side of Trend Line.
6. Recommend only entries during LS.

....really, don't need a pdf. for something so simple! And this stuff is repeated ad-nauseum throughout the thread. Kinda hard to miss it if one is looking for it, particularly with the very second link in post #1 leading right to it.

If you are looking for a "fundamental concept" behind this, I guess it would be the proper PA wave. The Sonic R. System is not the originator of using that basic price pattern to launch into a trade. Combining it with the dragon refines such a method into waiting for the market to build up momentum for a move. This is why we don't just trade such PA patterns right after the first achievements of new price highs and lows. The dragon, and hence momentum for an opposite trade, does not yet exist in that new price area. And we don't guess at highs and lows for entry, even when such patterns exist because we are not "backlash reaction" traders.

EJ Volume Analysis:

Look at the two last three significant candles on this M30 chart. The blue bull candle could be a buying surge. It could be that SM hiked the price up while heavily shorting, too. Then, the following bear candle has about as much volume but makes no new highs. SM might be buying, but is keeping prices in a range while doing so. Or, it could be that SM is shorting, which resulted in a bear candle. Then, the next candle is also a bear,....so far.

See, there is no definitive conclusions to be drawn. Individual candle analysis like this is a bogus enterprise. One needs to look at other high activity areas on the chart, to see if anything of consistency shows up. This is in a down trend, so the odds are in favor of this activity being caused by SM hiking prices to take on better priced shorts. But that still remains to be born out with a downside move later in the day. Just have to wait for a Sonic R. Setup, see what direction it suggests, and if that direction and past volume activity areas, like this one, seem to be in agreement or not.

EU Comment:

All the market did Monday, while USofA was celebrating the Presidential Inauguration, was,........nothing! Oh, a grab here and there to increase positions. Buy the look of it, the bear is pulling the strings. More downside volume than upside. The US bear might come back to the table with a bullish move to grab what the bear wants, ....shorts! I'd half expect this, and have no idea how high SM might drive the price in order to carry off such a grab.

I have no bias, just a thought process that leaves open the possibility for a move in either direction, no matter what SM is, bull or bear. SM bulls can force prices down as well as up. And SM bears can force prices up as well as down.

Therefore, each new day,....either way! Hold the powder dry until SM comes out to play! As Master Sonicdeejay says, "Let the dragon and PA show the way."


-tah

That's exactly what I was looking for, actually. I read the secrets of sonic pdf, and its mention of the J16 thread (where I started) was what piqued my interest, actually. This is what I'm looking for, I believe, to compliment what I already do.

Entry does seem simple enough. Kudos to you guys for such hard work and long-term dedication. I'll try to keep the rest of my questions to myself until I finish the material and posts. Thanks.

Superflat monday, I'm just looking for a Break Even exit now.

The blue candle upbar was confirmed as SM selling as the next bar was a downbar.
If the blue bar was buying the next bar would have been another upbar.
So the particular bar in question was SM selling.

Mezzy, I presume therefore that your long was triggered. And now the asian SM are quick to send price lower. Lower, but so far only towards the bottom of the existing range.

Now, if you put M1 chart up, what do you see SonicR VSA suggesting? What I see is all the concentrated trading happening at the lower prices, not before the run down started. What does that suggest? Asian SM might be loading up for what they anticipate as a nice bull move later by the NYC SM bears. Do your own analysis, but take a look at this and let me know what you think. Price has been dropped to whole number area where trading increased. The upper half number for a pullback target later, when NYC bears load up shorts?

I have no bias. This could retrace up later, maybe even higher than the upper half number. The bottom could fall out beforehand, too.