The Sonic R. System: Early Entry Opportunities and Risk Manageme
The basic entry in the Sonic R. System is referred to as the "Classic" entry. Following the initial Classic entry, there are sometimes pullbacks that create opportunities for a "Probe" re-entry. At times, even before the Classic setup forms, price action alone suggests early Probe entry opportunities.
Two examples of early Probe entry opportunities are:
1. Suitable Swing High/Swing Low pattern in the opposite direction of a recently completed large swing.
2. A breakout from a price compression zone before the Classic setup forms.
The least risky application of the Sonic R. System involves using PVSRA to determine:
- Whether the Market Maker entities are buying or selling.
- Whether the price is running for profits (trend continuation) or building positions (counter-trend).
Only trade Classic and Probe setups when the price is moving in the same direction as the MM entities, aligning with their "run for profits" direction.
Bullish speculators may pull the price down to buy (position building) before they start pushing the price up for profits. Even in the early stage of an uptrend (run for profits), they pull the price down to accumulate. The trading opportunity here is to buy early on retracements during the run for profits phase of an uptrend.
Bearish speculators may push the price up to sell (position building) before they start pushing the price down for profits. Even in the early stage of a downtrend (run for profits), they push the price up to add to their short positions. The trading opportunity here is to sell early on retracements during the run for profits phase of a downtrend.
It's crucial to understand that while we may identify whether the MM is bullish or bearish, we cannot know when they will complete their position building and start pushing the price for profits. To avoid getting trapped in a trade during an extended position-building phase in the opposite direction, it's best to wait for early trading opportunities on retracements during the run for profits phase.
Two examples of early Probe entry opportunities are:
1. Suitable Swing High/Swing Low pattern in the opposite direction of a recently completed large swing.
2. A breakout from a price compression zone before the Classic setup forms.
The least risky application of the Sonic R. System involves using PVSRA to determine:
- Whether the Market Maker entities are buying or selling.
- Whether the price is running for profits (trend continuation) or building positions (counter-trend).
Only trade Classic and Probe setups when the price is moving in the same direction as the MM entities, aligning with their "run for profits" direction.
Bullish speculators may pull the price down to buy (position building) before they start pushing the price up for profits. Even in the early stage of an uptrend (run for profits), they pull the price down to accumulate. The trading opportunity here is to buy early on retracements during the run for profits phase of an uptrend.
Bearish speculators may push the price up to sell (position building) before they start pushing the price down for profits. Even in the early stage of a downtrend (run for profits), they push the price up to add to their short positions. The trading opportunity here is to sell early on retracements during the run for profits phase of a downtrend.
It's crucial to understand that while we may identify whether the MM is bullish or bearish, we cannot know when they will complete their position building and start pushing the price for profits. To avoid getting trapped in a trade during an extended position-building phase in the opposite direction, it's best to wait for early trading opportunities on retracements during the run for profits phase.
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