10 Short Signals in a Row — Sonic System E-mini S&P Trade

What happens when a trading system keeps generating short signals, and each new signal appears lower than the previous one?

In this Sonic Tuesday video, John Paul from Day Trade To Win walks through a live E-mini S&P trade using the Sonic System and explains why a series of progressively lower short signals can provide useful information about the health and direction of a trend.

The video also covers Sonic System target settings, recent market lows, ATR-based profit targets, and how traders can adjust their approach depending on market conditions.

Watch the Sonic System Trade

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In this example, the Sonic System produced approximately 10 short signals during the session.

Rather than looking at each signal individually, one of the most important observations was that the signals continued appearing at progressively lower prices.

That provided additional context that the market was continuing to move lower.

Why Multiple Lower Signals Matter

One of the concepts we use with the Sonic System is to look at the relationship between consecutive signals.

If several short signals appear and each signal is lower than the previous one, that can provide additional confirmation that the market is maintaining downside momentum.

The same concept can apply in the opposite direction.

If multiple long signals continue appearing at progressively higher prices, it may indicate that the market is maintaining upward momentum.

The important point is not simply the number of signals.

The location of each signal relative to the previous signals can provide valuable information about the current trend.

The Live E-mini S&P Short Trade

In the video, a short opportunity develops after several Sonic short signals have already appeared.

Because each new signal is lower than the previous one, the market is continuing to demonstrate downside pressure.

A short trade is then taken using the Sonic System’s default target and stop settings.

The trade eventually reaches the profit target.

This provides a useful example of combining the Sonic signal itself with broader price-action context rather than treating every signal as an isolated event.

Why Recent Highs and Lows Matter

Markets frequently revisit recent highs and lows.

When the market has recently established a low for the day, that area can become important because price may return to test it.

This does not mean that the market will always break through the level.

Instead, the recent low provides an area where traders may expect some type of market reaction.

In the trade shown in this video, the profit target was positioned just ahead of the recent low.

The market subsequently moved back toward that area and tested the low.

Using Recent Lows as Potential Profit Areas

Recent highs and lows can provide useful context when managing trades.

For a short trade, a recent market low may become a potential profit-taking area.

For a long trade, a recent market high may provide similar context.

This can be helpful because traders are using actual market structure rather than choosing arbitrary profit targets.

The Sonic System also provides ATR-based targets, which can be adjusted depending on the trader’s preference.

Sonic System ATR Target Settings

One of the features demonstrated in the video is the ability to adjust the Sonic System’s profit target using the Average True Range, or ATR.

The default setting shown in the trade uses:

1x ATR

This provides a relatively closer profit target.

Traders can also increase the target to:

2x ATR

or

3x ATR

Increasing the ATR multiplier creates a larger potential profit target.

However, larger targets may take longer to reach and may result in fewer completed winning trades.

There is always a tradeoff between attempting to capture a larger market move and using a more conservative target.

1x ATR Target

The 1x ATR setting is the default used in the video.

This creates a relatively modest target based on current market volatility.

One advantage is that the target may be reached more frequently during normal market movement.

For traders who prefer shorter-duration trades, the 1x setting may provide a practical starting point.

2x ATR Target

Increasing the target to 2x ATR gives the trade more room to capture a larger move.

The potential reward is greater, but the market must travel farther before reaching the target.

This may result in fewer completed trades compared with the 1x ATR setting.

3x ATR Target

The 3x ATR setting is designed for traders attempting to capture even larger moves.

This can work well when a strong trend develops, but the market must move significantly farther.

The video demonstrates how dramatically the potential target changes when moving from 1x to 3x ATR.

The best setting depends on market conditions, volatility, trading style, and risk tolerance.

Why the Sonic System Uses Price Action

At Day Trade To Win, we focus heavily on price action trading rather than relying entirely on conventional lagging indicators.

The Sonic System is designed to help traders identify potential opportunities based on what price is currently doing.

Signals can then be evaluated within the broader market context.

In this example, the combination of multiple lower short signals, a recent market low, and continued downside movement provided additional information around the trade setup.

Using the Sonic System on a One-Minute Chart

The trade shown in this video uses a one-minute E-mini S&P chart.

Each candle represents one minute of market activity.

The one-minute chart can provide traders with a detailed view of shorter-term market movements while still allowing enough time to evaluate signals and market structure.

Different traders may prefer different chart types or timeframes depending on their trading style.

Sonic System on NinjaTrader and TradingView

The Sonic System is available for both NinjaTrader and TradingView.

This gives traders flexibility in how they view and use the system.

Traders can use the Sonic System as a standalone trading method or combine it with other Day Trade To Win tools such as:

• Roadmap
• Atlas Line
• Trade Scalper
• Blueprint
• Other price action trading methods

Don’t Take Every Signal Automatically

An important point in this video is that the goal is not necessarily to take every Sonic signal.

Instead, traders should look at the context around the signal.

Questions to consider include:

• Are consecutive signals moving in the same direction?
• Is each new signal higher or lower than the previous one?
• Is the market approaching a recent high or low?
• Is volatility increasing or decreasing?
• Is the market trending or moving sideways?

Using this additional context can help traders make more structured decisions.

Final Thoughts

The Sonic System produced multiple short signals during this E-mini S&P session, but the most important information was not simply that there were many signals.

The key observation was that the signals continued appearing progressively lower.

That provided additional evidence that the downside trend was still intact.

The trade shown in the video used the default 1x ATR target, and the market subsequently moved back toward the recent low and reached the target.

Traders can also experiment with 2x and 3x ATR settings depending on the type of market movement they are trying to capture.

To learn more about the Sonic System and other Day Trade To Win trading software, visit:

DayTradeToWin.com

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About Day Trade To Win

Day Trade To Win provides price action trading education, software, and trading strategies for traders participating in futures, stocks, forex, and other financial markets.

Our trading tools are designed to help traders better understand price action, market structure, trade timing, volatility, and potential entry and exit areas without relying heavily on traditional lagging indicators.

Day Trade To Win offers trading software for NinjaTrader and TradingView, including the Sonic System, Roadmap, Atlas Line, Trade Scalper, and other proprietary price action methods.

Traders looking for more comprehensive instruction can also access Accelerated Mentorship, which combines trading education, strategy training, and access to Day Trade To Win software.

Learn more at DayTradeToWin.com.

Frequently Asked Questions

What is the Sonic System?

The Sonic System is a Day Trade To Win trading tool designed to identify potential trading opportunities using price action and predefined trading rules.

Can the Sonic System be used for E-mini S&P futures?

Yes. The Sonic System can be used with E-mini S&P futures and other supported markets.

What does it mean when Sonic signals keep appearing lower?

When multiple short signals appear progressively lower, it may indicate that downside momentum is continuing. Traders can use this information as additional market context.

What is ATR?

ATR stands for Average True Range. It measures market volatility and can be used to create dynamic profit targets and risk-management levels.

What does 1x ATR mean?

A 1x ATR target uses one multiple of the current ATR calculation as the basis for the potential profit target.

Can Sonic use 2x or 3x ATR targets?

Yes. Traders can adjust the ATR multiplier to create larger profit targets, although larger targets may be reached less frequently.

Does Sonic work on NinjaTrader?

Yes. The Sonic System is available for NinjaTrader.

Does Sonic work on TradingView?

Yes. The Sonic System is also available for TradingView.

Should traders take every Sonic signal?

No. Traders may choose to consider additional context such as trend direction, consecutive signals, volatility, recent highs and lows, and overall market structure.

Risk Disclosure

Risk Disclosure: Futures, stocks, forex, options, and cryptocurrency trading involve substantial risk and are not suitable for every investor. Past performance is not necessarily indicative of future results. The information provided by Day Trade To Win is for educational purposes only and should not be considered financial or investment advice. Always understand the risks involved before participating in the markets.