SONAR Indicator with Price Patterns

What is the SONAR indicator by FXGroundworks?

SONAR is a way of combining frequency analysis with price patterns to confirm a patterns natural direction. It will act as another layer to give traders a further edge and confirmation in their trading.

Supported on NinjaTrader as well as MetaTrader

SONAR with Price Patterns

How does SONAR work?

SONAR works by using the non-linear data of the market and applying it in the same way as how submarines use passive sonar in real world environments. There are two different types of sonar: active sonar and passive sonar. Active sonar is more like how you probably imagine submarines to work. They send off a ping and measure the amount of time it takes to have that reflected back to them. However since we can’t transmit pings in the market, we use passive sonar which listens without transmitting. So imagine how a ping might be used to find out how far away a ship is, where with passive sonar your application might be to see how far a whale is which sends off it’s own sound.

In the forex market we don’t need sounds to be admitted, we instead listen to the market and messure the frequency waves based off what we hear.

How far does SONAR project?

Different time frames will allow for SONAR to project at different lengths. For example, a 30 minute chart will have sonar project about 2 days in advance.

Let’s zoom in on the same pattern as the trade above, but on a lower 15 minute time-frame.

Sonar Counter Wave Price Pattern

If you wish to understand more about Sonar and how it works you can visit the beginners guide to sonar – part 1 as well as find out how to use the sonar indicator for when you become a member.