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Originally Posted by pipmeplease
I've just come across this system and im unsure on a few things. do we set up an order on the new candle after we see that the last 4hr has left a large wick. Or on the same candle? Do you set up orders right at the end of the wick/spike? thanks
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It has nothing to do with wicks or spikes. The scalp may very well be at the top of a large wick, but it doesn't have to be.
We're looking for places where the price has changed direction. See the pics in the first post for an example.
After price hits a high/low, moves at least a days worth of pips over 4 or more candles, it is then a scalp line. These aren't "rules" of the system though, just guidelines. Yesterdays trade only retraced about 200 pips, but it had a double bounce that confirmed it was a good line.