Sonic R. System

Comment on Daily GbpJpy

Price is now clear inside a dinamic area. A few more bars with high volume. But no clear direction. We had clear Sonic Classic Setup. And despite the high volume on down bars, i don't spot yet signs of reversal to the up side (long term). But i expect a small retrace to 89line or dragon to have a short re-entry. If that happens i will target first to 175.3 then 173.5.
Keep in mind that we never know where the price is going to. Let's see.

Attached Image (click to enlarge)

GBPJPY

From the H1 chart we get a clear indication that the 177.00 whole number is major support. Early Friday the AS MM enjoyed house cleaning of liquidity for longs from below this key level to below the 176.00 level. Following that, both the London and US MMs also had the price below this key level, and with notable volumes, too! And this was followed by more notable volume as the MMs began their drive up, which they supported right until the end of the day. This looks bullish.

Can the MMs whack the price again? Sure they can! They can whip or whack price whenever they want to because the price queue shows them they can profit by doing so! It can happen anytime. And it can sometimes happen first in one direction and then in the other direction. Manipulating price up and down the price queue is the way the Robber Bank MMs create liquidity for the market and profits for themselves.

So, what is important here is to see if by looking at the proper metrics (price action, volume and S&R) we can get a sense of overall bullishness or bearishness. Then look for a setup in either direction. Then trade the the proper setup, regardless of direction, but with the prudence required. Setup direction takes precedence over "analysis bias", which serves to give us a reason to be prudent.

We do not know what we will see come next week. We do not know if the MMs will engage in the "early week staging of price" for planned moves later in the week. We do not know what setups, if any, will present themselves early in the week. All we can do is review charts for the metrics, look for setups, and then trade what the market gives with prudence, when the market gives the right stuff at the right time,....our London session classic setup.

BTW, check your own charts for this, but I see that every one of the JPY pairs had substantial "basing activity" below key S&R levels Friday. And they all also had increasing volumes ahead of, or leading up to their US session breakout moves. To me, they all look bullish at the conclusion of the week. But next week is a new ball game. It always is.

-tah

GBPJPY

After about the first five hours of the new week AS, we can see from the M15 chart that the lowest prices brought the highest volumes. This could mean the MMs are closing shorts opened at the highs except for the fact that volume says they would be closing more than they opened! Therefore, it is a good bet the MMs are accumulating longs. The previous move up today was likely accumulation of longs also, but the MMs tend to keep price in a range when accumulating, so when the price got too high, they whacked it back down and have resumed accumulating longs.

Ranging the price gives the MMs multiple benefits, including confusing traders as to what they are primarily after, sucking in wrong side traders to create desired liquidity, sucking in right side traders who can be stopped out later for more desired liquidity, and providing the opportunity to establish an average price for the accumulated longs that is lower than if they allowed the price to just continue up as they accumulated longs.

This is not a time to trade, however. For one thing, the early part of a week can involve a lot of price manipulation in preparations for moves later in the week. It is easy to end up on the wrong side of the better moves if one jumps into a trade too early in the week. For another thing, we need to stick to classic setups that form up in the London session, not the Asian session. Doing anything else is at a trader's discretion, but it is not recommended and usually results in losses.

Beforehand, I posted that all the JPY pairs finished last week looking bullish. What is going on right now with this pair is consistent with that post. Needless to say, prudence dictates we wait at least until into the first London session of the week to see what the MMs do with this pair, and with all the JPY pairs for that matter.

Market Comment

Sonikers,

With two JPY high impact releases coming tomorrow, it could be a big day for JPY pairs, which continue to look bullish. Look at the H1 charts.

With three GBP high impact releases coming Wednesday, it could be a bullish event for GBPUSD. Meanwhile, the MMs look to be keeping downside pressure on the price, which if the case means they are front running with their typical accumulation of longs strategy.

With five CAD high impact releases coming Wednesday, it could be a very big day for USDCAD, and it might be the day the Robber Bank MMs have kept this ranging for,....aside from the move down from the Diamond Top Reversal Pattern....which the MMs allowed and then quickly countered by putting the price right back up into the range. That, imho, was the first serious grab for shorts by the MMs. The coming five CAD releases might be the timing these Robber Banks have to open the floodgates and go for broke.

-tah

EURUSD

Sonikers,

There is a EUR high impact release coming later today. The Asian session MMs have started the day by whacking the price. This could be front running with their strategy for the accumulation of longs. If this is the case, then we might see a classic long setup later today.

Remember, we are not bottom pickers. The Sonic R. System is about utilizing market momentum to carry our trades to better profit. Anyone can pick bottoms.....and feel real smart for doing so.....until they eventually lose all their capital. We cannot know how the MMs will move price next. If there is any single thing the market shows us that can help our trades be successful - help us be successful - it is market momentum, which the Sonic R. System Classic trade capitalizes on when done properly.

The "when done properly" is the part that we Sonikers need to pay attention to. It is the location of key S&R that sets the stage for momentum. It is the PA waves and the angle of the Dragon that signal momentum,....."Let the Dragon and PA show the way", which is normally a London/US session affair.

-tah

NZDJPY Long Trade Open:

M15 classic setup. Of all the JPY pairs this is the one that has kept to the tightest ranging. The rest seem to already have begun their bullish moves.

AUDUSD Long Trade Open:

M15 classic setup. You can see the PA waves as price rose from the AS lows to the whole number on increasing volume. Now price has been pulled back to support just below the whole number.

Edit:

Stopped out for loss of 10 pips. Still bullish. Just put the SL tight, too tight. Will let this go 'til sometime later.

GBPUSD Long Trade Closed:

Closed for gain of 13.1 pips average, 78.6 pips total gain.

GBPUSD
Two days report, still on cut red fast and ride the beast as long as possible.
The result is below

Regards,
-GP-

nzd/jpy short trade opened

Hello all. This is my first post. English is not my native language, so excuse for grammatical mistakes. I've been open 2 scouts based on PVSRA on EURUSD. Bulls MMs push the price down. Just build their own positions.

UJ, M15 +138.5 on bounce from half number with dragon and trend headed up.....

Regards,
Cigarguy

NZDJPY

Sonikers,

There is a NZD high impact release in less than an hour. Right now the MMs have whacked the price and are holding it down. You can see they have taken the price below the whole number multiple times today, including in after hours trading.

AUDUSD Long Trade Open:

M5 classic in after hours. Good volume in US session as the MMs took price back down to the 3/4 level. They have kept price down since. Because the total move down today took the price from above a whole number to below a whole number, there is an indication of bulls at work to accumulate long orders below the whole number. There have been no less than five swings of price today up and down across the whole number to the lower 3/4 level. The volumes in those swings seem to favor the lows and coming up off the lows, so there is that indication of bulls also. No TP, SL at this time.


Edit:

Closed for gain of 33.5 pips average/total.

USDJPY Short Trade Open:

M15 pre-LS classic. To me, it looks like the MMs are front running the price downwards ahead of the coming JPY high impact releases. Could be wrong, have been before. No TP, SL yet.


Edit:

Closed for gain of 25.2 pips average/total.

Closed 2 couts long EU

usd /cad long trade closed and reopened

close u/c long trade

GBPUSD

Sonikers,

As shown on the attached chart, yesterday there was a lot of MMs whippin' & whackin' to create liquidity. This happened below the half number and mostly below the FR 50% area. This is a strong indication of bulls.

Currently, price is being nudged above the drawn TL (red line). In as much as the MMs might be looking to suck in more longs to be stopped out later for more liquidity, and in as much as this is only the Asian session, this break up thru the TL might not mean much. Waiting until we see what the MMs do in the London session seems the more prudent course of action.

-tah