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Sonic R System and PVSRA Trading Guide

The document discusses the Sonic R. System trading strategy and Price, Volume, Support, Resistance Analysis (PVSRA). It describes the "Classic" and "Scout" entry types in the Sonic R. System and explains that PVSRA is used to determine if Market Makers are bullish or bearish and if the price is in a "Run for Profits" or "Position Building" phase. It also outlines how to identify trading opportunities by looking for pullbacks early in the "Run for Profits" phase, when the price direction matches the determined Market Maker status. The document emphasizes that PVSRA takes time to master but is important for understanding how the market works and finding low-risk trade

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0% found this document useful (0 votes)
144 views2 pages

Sonic R System and PVSRA Trading Guide

The document discusses the Sonic R. System trading strategy and Price, Volume, Support, Resistance Analysis (PVSRA). It describes the "Classic" and "Scout" entry types in the Sonic R. System and explains that PVSRA is used to determine if Market Makers are bullish or bearish and if the price is in a "Run for Profits" or "Position Building" phase. It also outlines how to identify trading opportunities by looking for pullbacks early in the "Run for Profits" phase, when the price direction matches the determined Market Maker status. The document emphasizes that PVSRA takes time to master but is important for understanding how the market works and finding low-risk trade

Uploaded by

thang 1
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Sonic R.

System Trades and PVSRA


Sonic R. System Trades
The fundamental entry for the Sonic R. System is called a “Classic” entry. After the initial Classic entry, there are
sometimes pullbacks which set up the opportunity for re-entry "Scouts”. There are times before a Classic setup has
formed that price action alone suggests an early entry "Scout" opportunity. Two examples of an early entry Scout
opportunity are: (1) a suitable pattern of H/Ls in the opposite direction from a big run recently completed, and (2) a
break out from a consolidation area before a Classic setup has formed. The least risky application of the Sonic R.
System is to use PVSRA to determine: (1) if the price moving entities (Market Makers or MMs) are bulls or bears, and
(2) if the price is moving in that bull or bear direction (Run for Profits) versus if the price is moving in the opposite
direction (Position Building), and then (3) trade Classics and Scouts only when the price is moving in the same
direction as is the status of the MMs, their "Run for Profits" direction.

and PVSRA
PVSRA stands for Price, Volume, Support, Resistance Analysis. The purpose of PVSRA is to:
1. Determine if the MMs are bulls or bears.
2. Determine if the price movement is in the MM's "Run for Profits" or "Position Building" phase.

Price includes consideration of individual candlestick configurations (example: hammer, engulfing,....see "Essence of


Sonic R" in Post #1) as well as any visible pattern (example: Head & Shoulders) and the wave action in general
(example: higher H/Ls or lower H/Ls), keeping in mind that prices tend to move in inter-day swings of 100+, 150+,
200+, 250+, etc. pips. Where price might be in a swing can determine if the price movement is in the "Run for
Profits" or the "Position Building" phase.

Volume is the count of trades on the broker server (currency size undisclosed) and what we are looking for are
notable increases relative to preceding volumes. The M1 chart is excellent for spotting if higher trading activity is
occurring at highs or lows. The M1 chart does not reveal the status of MMs continuously due to times of conflicting
signals. However, when the MMs activity will provide clues, they will stand out in real-time best on the M1 chart.

Support and Resistance 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 PVSRA is that bull MMs prefer buying below key S&R and bear MMs prefer selling above key S&R.
It will help us to determine if the MMs are bulls or bears by finding out where (above or below key S&R) they are
doing most of their trading. This is not the only consideration, of course, but it is a helpful one. We also need to
determine if the MMs are in a "Position Building" phase (running price opposite their status), or if they are in a "Run
for Profits" phase (running price per their status). It is the "Run for Profits" phase that we want to trade. There is less
risk to us if we are trading in the direction per the status of the MMs when the MMs are pushing the price in that
direction. For example, if the MMs are bulls, then we want to trade long, but only when the bull MMs are in their bull
"Run for Profits" phase. We do not want to trade long when the bull MMs are in their bull "Position Building" phase,
because we cannot know how long that phase will last and the longer it lasts the lower the price is going! Let's see
how the MMs work, and how and where they change status.

Starting with the turn of a trend, for example a new trend with prices moving upwards, the MMs have started their
bull "Run for Profits" phase. These bull MMs have already been building long positions in the latter part of the previous
down trend, and during any ranging of the price before the new up trend started. That was their bull "Position
Building" phase. The bull MMs will continue adding longs in the new up trend direction. They will do this during
retraces downwards, possibly taking price below key S&R to add longs. This is a long trading opportunity, early in a
fresh up trend when the bull MMs are focused on adding longs at retrace lows. At a point during the up trend, the MMs
will shift from a bull "Run for Profit" to a bear "Position Building" phase. PVSRA will start showing the MMs as bears
instead of bulls. The price will still be moving up, but the bear MMs are now focused on highs as sellers, to close longs
and build short. They will still be adding longs at lows in order to continue to profit as they continue to push price up.
And they will continue to push the price up in order to deceive longs into buying so there will be liquidity the bear MMs
need to close their longs and open shorts. This is where the bear MMs begin the bear "Position Building" phase. It will
continue until the price reaches the top and possibly goes to ranging. We cannot know how long or how high bear
MMs will push price up during the bear "Position Building" phase, but eventually the bear MMs will turn the price
downwards starting the bear "Run for Profits" phase. The bear MMs will continue to add shorts in the new down trend
direction. They will do this during retraces upwards, possibly taking price above key S&R to add shorts. This is a short
trading opportunity, the time early in a fresh trend down when the bear MMs are focused on adding shorts at retrace
highs.

To summarize, think of it this way. Bulls can trend prices down for buying (position building) before they start
trending prices up for profit, but even during the early trend up (run for profits) they pull prices back down to add
more longs. The trading opportunity here is to trade long on retraces early in the bull "Run for Profits". Bears can
trend prices up for selling (position building) before they start trending prices down for profit, but even during the
early trend down (Run for Profits) they pull prices back up to add more shorts. The trading opportunity here is to
trade short on retraces early in the bear "Run for Profits". It is extremely important that you understand, even though
we can determine if the MMs are bulls or bears, we cannot know when they will finish position building and turn prices
in the profit making direction. To avoid getting trapped in a trade that is in the "Run for Profits" direction, during a
prolonged "Position Building" phase in the opposite direction, it is best to wait for a trading opportunity on a retrace
early in the "Run for Profit" phase. This means you will not be trading "tops and bottoms". Instead, you will be
performing the analysis we call PVSRA to determine if the MMs are bulls or bears and to determine where the price
action is in overall inter-day swings, looking for a corresponding bull or bear "Run for Profits" phase. You will be
looking for a Classic setup trading opportunity on a pullback early in the "Run for Profits" phase.

Becoming proficient with PVSRA is like becoming proficient with an art. It will take time for you to learn to "read" what
the charts have to say. But this is the essence of becoming a successful trader. Price, volume and S&R are totally
unrelated "technicals" and are absolutely the three most important "technicals" in trading. When you learn to put
these three things together, to see what the chart is saying, you will have mastered what truly matters. You will have
mastered how the market really works! This is what indicator dependent traders never master because they are too
busy looking for solely price derivative/price lagging indicators to "suggest" to them the future!

Common questions

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Timing in entering 'Classic' trades is crucial within the Sonic R. System because it ensures alignment with Market Makers' (MMs) 'Run for Profits' phase, where the price movement aligns with MMs' intentions to maximize profits . Using PVSRA, traders identify this optimal timing by analyzing inter-day swings, price volume increases, and movement around significant support and resistance levels to deduce whether MMs are bulls or bears and in which phase they currently operate . This alignment minimizes the risk of being caught in a prolonged 'Position Building' phase, ensuring trades are executed during more predictable, profit-driving phases .

The 'Position Building' phase is when Market Makers (MMs) manipulate the price contrary to their overall strategy to accumulate positions at advantageous rates, such as bulls buying during downward trends or bears selling during upward trends . The transition from 'Position Building' to 'Run for Profits' can be identified using PVSRA, indicating a trend change aligned with MMs' interests. Traders should look for significant movements or retraces that suggest MMs have finished accumulating and are now pushing prices toward their profit objectives . Real-time indicators like notable volumes at key support/resistance levels can signal these transitions .

The Sonic R. System advises traders to adopt a cautious approach during transitions between bull and bear phases of Market Makers (MMs). Monitoring through PVSRA is critical to recognize these shifts. For instance, a transition is indicated when price actions aligned with bull phases start showing characteristics of a bear 'Position Building' phase, often marked by increased selling at highs . To manage trades effectively, traders should wait to execute trades on retraces early in the new 'Run for Profits' phase, ensuring the trades align with the MMs' current strategy. This reduces the risk of entering trades on ephemeral trends during prolonged 'Position Building' phases, which can be misleading .

Applying PVSRA to determine inter-day swings can present challenges due to the complexity and volatility of market dynamics. Accurately distinguishing between 'Position Building' and 'Run for Profits' phases requires keen observation of patterns in price movement and volume, which can be inconsistent or ambiguous, particularly on shorter time frames like the M1 chart . Traders may find it difficult to assess the significance of large price swings—100, 150, 200 pips—and their correlation to MMs' strategies. Additionally, different interpretations of support and resistance can lead to misjudgment of MMs' status as bulls or bears, influencing the potential profitability of trades . Mastery of the art of PVSRA requires patience and experience to synthesize these elements effectively for successful trading outcomes .

The Sonic R. System's emphasis on trading during Market Makers' (MMs) 'Run for Profits' phases significantly impacts trading decisions by prioritizing trades that align with the direction in which MMs are pushing prices for profits . Engaging in trades during this phase reduces risks associated with the unpredictable duration and directionality of the 'Position Building' phase. By doing so, the system reduces the likelihood of trades being trapped by contrary movements. This approach requires traders to engage in comprehensive PVSRA to identify appropriate entry points when the MMs' intentions become clear .

Emotional detachment enhances the effectiveness of the Sonic R. System by allowing traders to adhere strictly to the analytical insights provided by PVSRA without being influenced by impulsive decisions or external pressures. This detachment is crucial as it helps in objectively assessing whether MMs are in 'Position Building' or 'Run for Profits' phases, hence ensuring trades are based on factual data and strategic phase interpretations rather than emotional reactions to market volatility . This disciplined approach facilitates precise timing for 'Classic' and 'Scout' entries, maximizes profitability, and reduces susceptibility to emotional traps like fear and greed, critical in volatile markets .

Support and resistance are pivotal in PVSRA as they offer critical insights into Market Makers' (MMs) longer-term intentions. These zones are where MMs conduct major transactions, validating whether they are accumulating positions (bulls below support, bears above resistance) or offloading them (bulls above resistance, bears below support). This activity helps reveal whether MMs are in a 'Position Building' phase to set up or a 'Run for Profits' phase to maximize returns . Such analysis guides traders in anticipating significant market turns and correctly timing entries to align with these strategic moves, understanding MM behavior and their market impact depth .

PVSRA (Price, Volume, Support, Resistance Analysis) assists in identifying if Market Makers (MMs) are acting as bulls or bears by evaluating their trading activities relative to key support and resistance areas. Bull MMs tend to buy below these areas, while bear MMs sell above them. By examining the price movement, namely candlestick formations and wave patterns, traders can infer if the price is in a 'Run for Profits' or 'Position Building' phase . Volume analysis further confirms these statuses by highlighting increased trading activities at significant price levels. Thus, once the status aligns with the price direction, traders can execute trades more confidently, focusing on periods when MMs are in their 'Run for Profits' phase to minimize risk .

Price chart patterns are integral to the Sonic R. System, serving as visual cues for anticipated movements in the market, such as 'Classic' and early 'Scout' entries. Traders observe individual candlestick configurations, like hammers and engulfing patterns, and broader formations, such as Head & Shoulders, to predict potential trend reversals or continuations . These patterns, when analyzed alongside PVSRA, help in confirming the current market phase—whether it's 'Position Building' or 'Run for Profits.' By synthesizing pattern recognition with volume and support/resistance analysis, traders can time their trade entries more strategically .

The Sonic R. System uses two types of entries: 'Classic' and 'Scout'. A 'Classic' entry is the fundamental trade setup, typically pursued when a clear trend is established. 'Scout' entries serve as re-entries following pullbacks or, less frequently, as proactive early entries suggested by price action alone, such as patterns of highs/lows or breakouts from consolidation areas . PVSRA (Price, Volume, Support, Resistance Analysis) informs traders on the directional intentions of Market Makers (MMs) by assessing whether they are bulls or bears and if the current price movement is a 'Run for Profits' or a 'Position Building' phase. Traders should align 'Classic' and 'Scout' entries with the MMs' running direction to minimize risk .

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