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Sonic R. System

  • #64,521
  • Jan 24, 2014 1:02am Jan 24, 2014 1:02am
AU Comment

The Asian session MMs pushed the price down another 40+ pips from yesterday's lows. All the MMs have been pushing the price down, but the Asian session MMs have not had an opportunity for the lower lows achieved yesterday because the Asian session ended while prices were higher. So, they whacked it some more to achieve lower lows for themselves during their last session this week. I think it is obvious that all the MMs are coveting the accumulation of low priced long orders, the lower the better apparently. The attack on the price will eventually end, we just cannot know when or at what price level.

All pairs including AUD are under such attack. There are no AUD releases pending for the remainder of this last day of the week, but the MMs would already be informed of anything coming over the weekend or next week that they might be eagerly preparing for now.

If you are trading anything mated with AUD and you are pro-AUD, you are getting decapitated right now. This is nothing more than the continuation of the effort to squeeze out all such trader's positions and hand them over to the MMs. My opinion.
  • #64,522
  • Jan 24, 2014 1:13am Jan 24, 2014 1:13am
Quoting traderathome
AU Comment The Asian session MMs pushed the price down another 40+ pips from yesterday's lows. All the MMs have been pushing the price down, but the Asian session MMs have not had an opportunity for the lower lows achieved yesterday because the Asian session ended while prices were higher. So, they whacked it some more to achieve lower lows for themselves during their last session this week. I think it is obvious that all the MMs are coveting the accumulation of low priced long orders, the lower the better apparently. The attack on the price will...
Agreed

I didn't take into consideration the Asian session MMs. My bad, but of course, they want also to play, so that 40+ pips move is pretty normal.
Whatever is obvious is obviously wrong!"
  • #64,523
  • Jan 24, 2014 1:21am Jan 24, 2014 1:21am
Quoting loeil
{quote} Agreed I didn't take into consideration the Asian session MMs. My bad, but of course, they want also to play, so that 40+ pips move is pretty normal.
Yeah but what would a good trader do? Defend the positions?
I want more brain power!
  • #64,524
  • Jan 24, 2014 1:22am Jan 24, 2014 1:22am
Quoting SaiLyfee
{quote} What do you mean by this? I don't understand
AU: Sonic may think that chances are AU is going to drop another 200 pips - even more on the longer run.
Attached Image (click to enlarge)
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Mind the gap
  • #64,525
  • Jan 24, 2014 1:25am Jan 24, 2014 1:25am
Quoting SaiLyfee
Pre-LS E/C Classic Short TP would like to at least see the MS2 area, no SL for now {image} Edit: Kinda interesting to see the stopping volume on the Daily chart for the last day is the highest its been in over a year {image}
EURCAD Comment

SaiLyfee, you have a potential H&S formation here. If it completes (price breaks down thru neckline) it suggests a target in the vicinity of RDL. The exact target depends on where the break down occurs along the neckline. You can see off to the left the previous resistance area, and that MS1, RDL and a whole number are in the same price level area.
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  • #64,526
  • Jan 24, 2014 1:34am Jan 24, 2014 1:34am
Quoting traderathome
{quote} EURCAD Comment SaiLyfee, you have a potential H&S formation here. If it completes (price breaks down thru neckline) it suggests a target in the vicinity of RDL. The exact target depends on where the break down occurs along the neckline. You can see off to the left the previous resistance area, and that MS1, RDL and a whole number are in the same price level area. {image}
Ah yes thank you TAH I indeed did see that! I probably should have waited for the neckline to break to be sure but I felt comfortable taking the trade after such moves up on high volume. I will have MS1 set as my TP 1 and may then set the trade at BE to see if it will continue its way down or not. It looks to me from the recent consolidation activity MM's are building shorts too, although as we can never know where price may move next, it could easily be whisked up to the RDH area and beyond before making its way down at an eventual stage. If it does I intend to add scouts there to compliment the entry.
Your posts have taught me well
  • #64,527
  • Jan 24, 2014 1:39am Jan 24, 2014 1:39am
Quoting Sunbrella
{quote} AU: Sonic may think that chances are AU is going to drop another 200 pips - even more on the longer run. {image}
Oh right, I understand now, it sure looks like those bad MM's are getting in on the action so if they do send price down further it should provide us some more nice opportunities as well. AU is screaming bullish to me..
  • #64,528
  • Jan 24, 2014 1:56am Jan 24, 2014 1:56am
Quoting Sunbrella
{quote} AU: Sonic may think that chances are AU is going to drop another 200 pips - even more on the longer run. {image}
RBA Wanted AU At 0.8500

I seem to remember a week or so ago that the head of RBA stated the desire for AU to be around 0.8500, and that might be what is transpiring, a push down to that level. Such an announcement is justification for the MMs to go to work and do it, no questions asked. However, they don't have to keep it there! They could build long all the way down, and just wait for the next excuse to run it all the way back up.

The inference here is just speculative, but I wouldn't put it past the MMs to pull it off.
  • #64,529
  • Jan 24, 2014 1:59am Jan 24, 2014 1:59am
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Ok what I see is selling climax on the M15. On the M1 most of the volume is above the BRN and "MMs like to close longs above BRN and open shorts". This however does not seem make a lot sense in this particular case. Where did the longs come from? Why would they push price down so hard to close longs?
I want more brain power!
  • #64,530
  • Edited 2:15am Jan 24, 2014 2:03am | Edited 2:15am
AU - there is absolutely no doubt it is a long building! Look at the pin bar and the volume, volume is much higher than previous long bar. Another sign of strength and it is a strong sign of bulls.
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Whatever is obvious is obviously wrong!"
  • #64,531
  • Jan 24, 2014 2:07am Jan 24, 2014 2:07am
Quoting loeil
AU - there is absolutely no doubt it is a long building! {image}
And they've been building a giant load of it I might add
I want more brain power!
  • #64,532
  • Jan 24, 2014 2:10am Jan 24, 2014 2:10am
Quoting cfdtaleong
{image} {image} Ok what I see is selling climax on the M15. On the M1 most of the volume is above the BRN and "MMs like to close longs above BRN and open shorts". This however does not seem make a lot sense in this particular case. Where did the longs come from? Why would they push price down so hard to close longs?
Keep in mind that the start of a push down involving high "volume", such as you point out on M1, could just be the required effort to get the price lower. Remember, we are seeing the volume of the number of trades, not the size of those individual trades. Therefore, at the bottom, a wee bitty volume bar might actually represent far more currency traded at the lows than all the sum of the preceding bars! Interesting, huh? Now you know why we are not allowed true volume information! But, we make do with what we have.

The key here is that they worked pretty hard to get the price below the whole number. That is the clue.
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  • #64,533
  • Jan 24, 2014 2:13am Jan 24, 2014 2:13am
Quoting loeil
AU - I don't know what I missed. Anyway I'm sure, it is long buildings there. Exactly the same thing happened with EU too, I was sure it was an accumulation, MMs brought the price through the accumulation and then rallies up. I don't see any short building there, maybe I need glasses Anyway I'm holding my longs. {image}
Perhaps I added the 2 red lines for you to see the Supply on A/U may help.

Agreed with Sunbrella on A/U looking still going to drop further with his chart.
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  • #64,534
  • Jan 24, 2014 2:18am Jan 24, 2014 2:18am
Quoting cfdtaleong
{quote} And they've been building a giant load of it I might add
Under the circumstances, I believe you are allowed the latitude of saying "a giant shitload of it...."
  • #64,535
  • Jan 24, 2014 2:19am Jan 24, 2014 2:19am
Quoting foxybunny
{quote} Perhaps I added the 2 red lines for you to see the Supply on A/U may help. Agreed with Sunbrella on A/U looking still going to drop further with his chart. {image}
Perhaps you should read more volume And reading the rest of the thread would not bad idea also!
Whatever is obvious is obviously wrong!"
  • #64,536
  • Jan 24, 2014 2:21am Jan 24, 2014 2:21am
Good trade?
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  • #64,537
  • Jan 24, 2014 2:29am Jan 24, 2014 2:29am
Quoting foxybunny
{quote} Perhaps I added the 2 red lines for you to see the Supply on A/U may help. Agreed with Sunbrella on A/U looking still going to drop further with his chart. {image}
foxybunny,

What your red lines demonstrate is the possibility the big banks placed big shorting orders there and the MMs took the price back up there to get those short orders filled. However, now those banks are buyers, just waiting for the right price to buy-to-close their shorts. This means they now have orders somewhere lower, to close all the shorts they opened. We don't know where that is. The MMs do know where that is, and that is where the price is headed. The only thing that can cause the price to stop dropping prematurely is if the banks start raising their price to close those positions. That could happen if those willing to short at whatever those lower prices are, disappear. You can be damn sure the MMs themselves are not going to back the banks plays!

So, it becomes a matter of how well the MMs can manipulate prices to try and convince shorters that it is a good idea to be shorting at whatever those lower prices are that the banks have set to close their short orders. Somebody needs to be left holding the bag, and it ain't going to be the MMs!
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  • #64,538
  • Jan 24, 2014 2:30am Jan 24, 2014 2:30am
Hello , may I ask about the volume analysis . I use it along with L-H-HL-HH wave , and the wave is starting to cross above the dragon . Dragon must also be angled up . Then you check with the volume indicator below , if the volume bar is beginning to increase where the bar becomes bigger , I assume it's coming to a buy direction . However may I ask do you use the y-axis at the volume indicator ? Does it need to reach to a certain amount only I can consider to volume is coming ?


Also what does the line PSV , RDH and RDL stands for ??
  • #64,539
  • Jan 24, 2014 2:38am Jan 24, 2014 2:38am
Quoting traderathome
{quote} foxybunny, What your red lines demonstrate is the possibility the big banks placed big shorting orders there and the MMs took the price up there to get those short orders filled. However, now those banks are buyers, just waiting for the right price to buy-to-close their shorts. This means they now have orders somewhere lower, to close all the shorts they opened. We don't know where that is. The MMs do know where that is, and that is where the price is headed. The only thing that can cause price stop dropping is if the banks start raising...
Totally agree again! This is exactly what MMs need, all the herd is thinking that was a resistance and it was break out and they jumping to short now. And MMs laughing
Whatever is obvious is obviously wrong!"
  • #64,540
  • Jan 24, 2014 2:50am Jan 24, 2014 2:50am
Quoting juniorlcq
Hello , may I ask about the volume analysis . I use it along with L-H-HL-HH wave , and the wave is starting to cross above the dragon . Dragon must also be angled up . Then you check with the volume indicator below , if the volume bar is beginning to increase where the bar becomes bigger , I assume it's coming to a buy direction . However may I ask do you use the y-axis at the volume indicator ? Does it need to reach to a certain amount only I can consider to volume is coming ? Also what does the line PSV , RDH and RDL stands for ??
You need to start at page one and do your homework. That is how you'll learn the answers, which appear already in what you need to read.
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