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!