This article is limited to a basic introduction. Those interested can find many good and detailed articles online (I do not want to mention them to avoid any promotional implications).
The Sonic R method is a trading approach used in financial markets, especially in Forex and stocks, developed by a community of traders based on technical analysis techniques. This method focuses on analyzing trends, accumulation, and breakout of prices to make trading decisions.
Main components of the Sonic R method:
1. Timeframe:
Sonic R is often applied on M15 or H1 timeframes, depending on the trader's trading style and time management ability.
2. Trading principles:
Accumulation and breakout: This method focuses on observing price accumulation at support and resistance areas, then waiting for the breakout.
Trend following: Sonic R prioritizes trading in the main trend of the market.
3. Supporting tools:
EMA (Exponential Moving Average): The EMA moving average is often used to determine the main trend.
Volume: Data on trading volume is used to determine market participation during key phases, such as accumulation or breakout.
4. Sonic R trading process:
Trend analysis: Use technical indicators like EMA to identify the main trend (upward or downward).
Identify accumulation area: Observe price consolidation areas at support/resistance levels.
Wait for breakout: Trades are only executed when price clearly breaks out of the accumulation area with high volume.
Risk management: Set stop loss below/above support/resistance areas and use a reasonable risk/reward ratio (typically 1:2 or 1:3).
5. Advantages of Sonic R:
Easy to understand and apply for beginners.
Suitable for short-term and medium-term trading.
Based on technical analysis and volume.
6. Limitations:
Heavily dependent on trading volume; this can be difficult to apply in some markets without accurate volume data.
The effectiveness of the method depends on the discipline and adherence to trading principles of the investor.
You can apply the Sonic R method to practice trading and test its effectiveness using a demo account before applying it to the real market.
