Sonic R System

THE SONIC R. SYSTEM IS A METHOD OF TRADING PRICE MOVEMENTS BETWEEN AREAS OF SUPPORT AND RESISTANCE.

It trades on the M15 chart. It uses a price activity WAVE at an S&R area to validate a trade setup, and technical indicators called the DRAGON and the TREND. The DRAGON is used for picking the trade entry. The TREND is used to confirm the correct trade direction. Historic S&R is used for picking the trade exit.
Placement of EP
Wait for a WAVE leg #3 candle to break out of the DRAGON, and place your entry order at least several pips beyond it. It is better if there is no strong S&R area just beyond the entry. Remember also, it is best if PA is above TREND for longs, below TREND for shorts.
Placement of Re-entry
It is best to let PA clear the most recent high, or low, and if there is no strong S&R area just beyond this re-entry.
Placement Of TP
Select a historic S&R level. Such levels can include whole/half/quarter numbers and the middle of consolidation areas.
Placement of SL
These are the rules for placement of the SL (see picture below that illustrates):
The SL must be beyond the H/L (for shorts/longs) of the recent large scale price swing.
The SL must not be more than 100-120 pips from the EP (for EUR/USD).
Example
Below are an example of a Sonic R. System short setup and trade, and of the rules for placement of the SL. The key elements of the Sonic R. System are clearly labeled and illustrated.

THIS TRADING STRATEGY IS STILL MAINLY BASED ON PRICE VOLUME SUPPORT & RESISTANCE ANALYSIS (PVSRA) AND THE SONIC R. SYSTEM.

What I’ve studied and included as well is the Volume Spread Analysis (VSA). With the understanding of what’s going on in the market, I was able to capture some good intra-day trades targeting between 15 to 50 pips each.
For illustration and example, I’ll be using this week EU chart. First, I’ll look at the H1 chart. And applying VSA, we can see signs of strength in the background (as usual, Monday is always a good time to analyse the market and not get in first).

Once we identify our overall bias from the H1 chart, we’ll zoom in to the M15 chart for our entry. This M15 chart shows yesterday and today’s activities. As we can see both from the H1 and M15 chart, there is a formation of ‘W’, the double bottom. This gives us an indication to enter the market.

PRICE, VOLUME, SUPPORT, RESISTANCE ANALYSIS.

Price includes the consideration of individual candlestick configurations as well as the pattern, or flow of price action in general. An increase in volume notably relative to immediately preceding volumes is what to look for. The S&R refers primarily to the quarter divisions between whole numbers, with whole numbers, half numbers and finally the 1/4 and 3/4 numbers being important in that order. Other support and resistance areas formed by past price action are also to be considered.
The premise behind the analysis is that those entities that move prices have established habits. When the price moving entities are bulls they like to move prices below key S&R to do their buying. When they are bears they like to move prices above key S&R to do their selling. So, we can determine if the price moving entities are bulls or bears by finding out where (above or below key S&R) they are doing most of their trading.
Trade Entries
Once we determine the bull/bear status of the price moving entities, we can analyse further to see if they are in a “position building” mode, or if they are in a “run for profits” mode. It is the “run for profits” mode that we want to trade.
Bulls can repeatedly move prices down for buying (position building) before they start moving prices up for profit, but even during their run up for profits they can repeatedly pull prices back down to add more longs (trading opportunity). Bears can repeatedly move prices up for selling (position building) before they start moving prices down for profits, but even during their run down for profits they can repeatedly pull prices back up to add more shorts (trading opportunity). We can determine if these entities are bulls or bears, but we cannot know when they will finish position building and turn prices in the profit making direction. To avoid getting trapped in a prolonged position building phase by these entities, it is best to wait for a trading opportunity in the run for profit phase instead.
There are clues as to which mode, position building or profit making, the price moving entities are in. For example, if they are bulls and prices are generally falling and they are doing most of their trading below key S&R and other lows, then they are position building. If prices are generally rising and they are doing most of their trading below key S&R and other lows on pullbacks, then they are running the price for profits. Now if they are bears and prices are generally rising and they are doing most of their trading above key S&R and other highs, then they are position building. If prices are generally falling and they are doing most of their trading above key S&R and other highs on pullbacks, then they are running the price for profits.
The various colours used by the PVA Candles and PVA Volumes indicators (and regardless of the actual colour), denote when notable increases in volume occur to help you conduct your PVSRA to determine if the price moving entities are bulls or bears, and if they are position building or making a run for profits.

HARMONIC TRADING IS A METHODOLOGY THAT UTILISES THE RECOGNITION OF SPECIFIC STRUCTURES THAT POSSESS DISTINCT AND CONSECUTIVE FIBONACCI RATIO ALIGNMENTS THAT QUANTIFY AND VALIDATE HARMONIC PATTERNS.

These patterns calculate the Fibonacci aspects of these price structures to identify highly probable reversal points in the financial markets. This methodology assumes that harmonic patterns or cycles, like many patterns and cycles in life, continually repeat. The key is to identify these patterns and to enter or to exit a position based upon a high degree of probability that the same historic price action will occur.

The evidence of harmonic patterns in the financial markets can be found in price charts. A chart is nothing more than the collective record of buying and selling over time. Patterns that form over a particular period of time reflect a signal or technical “signpost” that can indicate the state of potential future price action. Furthermore, these situations have been historically proven to repeat and can identify significant potential trading opportunities with favourable risk-to-reward considerations.