14:29Forex Strategy Sonic R
This forex trading strategy is extremely popular among speculators especially in the USA.
First talk about this strategy went in late 2008 and since then Sonic R. System has won an army of admirers in the trading environment. This forex strategy is improved from year to year, and today three known versions of this trading approach. We talk about the most popular variant trading strategy Sonic R. System.
The basic idea of the strategy Sonic R. System
The authors of the strategy recognized that they do not believe in the so -called «forex Grail» and proceed with the thesis - «there is no such forex indicator that can predict where the price will go in the future." Forex trading - a probabilistic business because in each transaction the trader can be either in profit or in loss.
And the main task of any speculator - is to minimize losses and maximize profit in positive transactions. The strategy of Sonic R is trend-following method. In addition, the significant role played by the levels of support and resistance and strict adherence to the rules of money- management.
The basic principles of the Strategy
This forex trading strategy is based on the classic trend indicator witness - MA MA. If you add to the chart forex pair of three moving averages: 34 EMA High ( exponential moving average with a period of 34 , based on the opening prices ) , and the 34 EMA Close 34EMA Low, we get a rather narrow envelope moving averages. This forex trading strategy that envelope the authors called " Dragon » (Dragon), because the graph it looks like the dragon's tail. Dragon is used to determine the levels of the opening posture and placement of the safety stop.
Drawing, click to enlarge:
Opening level item in this trading strategy is defined very simply. If the candle breaks «Dragon» and closes above it - we put a stop to the deferred purchase a few points above the high of the closed down candles. For sale need to candle closed below, and then we put the deferred stop order to sell at a few points below the candle closed down.
Drawing, click to enlarge:
To purchase a stop-loss set at a few points below the "dragon", that is, by 1-2 points lower EMA34 Low. For key to stop selling put above the «dragon ", by 1-2 points above the 34 EMA High.
When trading strategy Sonic R. System
The strategy was created for intraday trading time- frame M5 and M15 . At the same time-frame M15 is recommended as the best to work on the strategy. The authors strongly recommend only trade on European and U.S. forex session and avoid trading on Asian.
And the important point - not to overtrade. That is not necessary to enter more than 5-6 trades a week on a forex pair, as they say - slow and steady wins the race.
Add the pivot levels and MACD
Once we plotted on the graph of the "Dragon” and learn to identify the signals to open positions , you should think about increasing accuracy. To confirm the signals to buy and sell can be used popular indicator MACD. To confirm a buy signal MACD histogram should be increased (the column indicator should be higher than the previous one), and the histogram itself should be above the signal line. To confirm the sale signal MACD histogram must be below the signal line, and the current column indicator must be below the previous one.
In addition, to identify intraday support and resistance levels are the authors recommend the use of Pivot. This is a very popular technique of support and resistance, and today there are a large number of modifications of this method. The authors recommend the use of strategies Pivot levels adjusted for levels of Fibonacci. Download Fibonacci Pivots Indicator you can below.
This forex indicator is very easy to use, no need to expect anything , just add an indicator to a chart and see the seven levels . Blue level - this is the central level (pivot level). If the price is above this level, we prefer transactions to buy if the price is below this level - we choose to sell signals . Levels of support (Support 1, 2 , 3) are targets for intraday bears levels RTD (Resistance 1 , 2, 3) is in daily goals for the Bulls . These levels can be used for profit .
Money- management strategies when working on Sonic R
The authors recommend strategies to apply the method of a fixed amount, that is, to work at the rate of O.1 lot per 1OOO USD depot. Pervasive nature you will conclude 2O positive trades in a row, this figure can be increased to O.2 lot.
Finally, we note that forex trading strategy Sonic R. System has a large number of different applications. Above is described only one of them. Below you can download forex indicator Fibonacci Pivot and the strategy pattern Sonic R. System.
Forex indicator and a template for the strategy DOWNLOAD
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