It is good question because it is different in Sonar compared to other DAW's.
Firstly to clarify with the test signal. The very peaks of the sinewave are meant to go right up to the required reference level. So if it is a -20 FS level we are talking then the peaks of our sinewave will reach -20 dB FS.
When you play this back in Sonar and if
rms and
peak are engaged
(also this advice is for 8.5 not X1 but I assume the same) you will see the peak signal at -20 and the rms level at -23db rms. This is because Sonars meters are showing the true rms level which is in fact 3 db down from peak.
(Note when you are watching playback of music, it is the rms meters you are mainly interested in and what overall level they are at. Sonor makes it harder because this indicator is lower down on the scale than it should be.) Easily rectified by the addition of a K system meter.
Some DAW's allow you to re jig how your track and buss meters are behaving. And when you put them into K system mode, they are now showing the
rms part around 0 dB VU
(with the headroom on its own scale above that) and you can still have a peak indicator on but it is working up in the headroom area above our reference now.
If your DAW cannot go into K system metering mode then we need another K system meter installed and patched in now to see a 0 dB FSD on a either a VU meter or something like the BlueCat meter (or Klanghem) so we can much better see our rms level being displayed right at the top of a meter scale as opposed to way down on a normal DAW meter. That is why normal DAW meters are not great for K system level checking. Your level setting operations become much better when you are looking at something hovering near 0 dB VU as opposed to way down at -23 db rms. The display is also only responding to rms levels and not peaks also making it much easier to adjust levels correctly. ie slower and smoother.