NickB's 4H Scalping Method

[tymen1]

To Phil838 :

Now I have the lines 158.49, 158.60 and 154.86

You have lines 158.57 and 160.45

For a moment I thought you added a buffer to my lines to get yours, but clearly not so.

So where did you get your lines?

For me to understand, I think you will need to post a chart.

[tymen1]

Originally Posted by ThePhoenix

It's lazy internet abbreviation for, " in my opinion."

Thanks for that!!

A long time mystery for me solved.

Keep in mind the nickb method doesn't try to predict a large movements ahead of time.

I've found, so far, that with this method it's just best to go with price action as it behaves

Point taken.
No more predictions.

How bout getting tottally on the nickb method boat,

I am going to wait on Phil838's response to my above question first since I think I may be confused.

[lavaman]

Originally Posted by tymen1

To Phil838 :

Now I have the lines 158.49, 158.60 and 154.86

You have lines 158.57 and 160.45

For a moment I thought you added a buffer to my lines to get yours, but clearly not so.

So where did you get your lines?

For me to understand, I think you will need to post a chart.

Hey Tymen,

I'm sure your 158.49 and 158.60 are the same lines as phil838's 158.57. That's close enough to just be a difference of charts. Your 158.49 was just the bounce of the 158.60 (or 158.57) line. That would not be two separate trades.

Your 154.86 line isn't a scalp line yet because not enough candles have formed in the retrace from that point. Nick B likes 10 candles to form on the H4 chart as I understand it, but sometimes people will take trades if only 6 or so have formed as phil838 mentioned a few posts ago.

[phil838]

Originally Posted by lavaman

Hey Tymen,

I'm sure your 158.49 and 158.60 are the same lines as phil838's 158.57. That's close enough to just be a difference of charts. Your 158.49 was just the bounce of the 158.60 (or 158.57) line. That would not be two separate trades.

Your 154.86 line isn't a scalp line yet because not enough candles have formed in the retrace from that point. Nick B likes 10 candles to form on the H4 chart as I understand it, but sometimes people will take trades if only 6 or so have formed as phil838 mentioned a few posts ago.

Yeah, I agree with everything Lavaman said. 158.57 is the top of the June 4th 8:00GMT 4H candle on my IBFX charts. The difference between your's and mine is probably just small differences in broker price feeds. I'd go with whatever your broker says.

Hopefully the weekend gap will be nice to us and not ruin the scalp line.

Also, I'm not going to trade the line if it breaks before London open on Monday morning. These types of trades depend on sudden price spikes and the volume is usually too low to get good momentum before then.

[phil838]

Here's a great example of different traders using their own judgment to find different lines and not following the "rules".

On Nick's blog this week he's considering 154.82 as a valid scalp line, even though it only had two candles between the formation of the line and 350 pip retraction. That's definitely breaking his own "rules."

I disagree with that line and won't be trading it, but it just goes to show you that this is a thinking man's trading system, not a mechanical one.

[johnnykanoo]

he's considering 154.82 as a valid scalp line,

why is that not considered a good scalp line? I thought the criteria was there had to be a good trend movement up to the scalp line. I didnt realize it matters if the market moves up fast afterwords. Also In a huge bull market im noticing a change in sentiment at least for the moment which would lead me to think a short at 154.82 would be a good move.

[phil838]

Originally Posted by johnnykanoo

why is that not considered a good scalp line? I thought the criteria was there had to be a good trend movement up to the scalp line. I didnt realize it matters if the market moves up fast afterwords. Also In a huge bull market im noticing a change in sentiment at least for the moment which would lead me to think a short at 154.82 would be a good move.

There needs to be good trend movement up to the scalp line and back away from the line.

This one, in my opinion, doesn't have a good movement away from the line.

And I agree with you, a short around there is a great trade based on chart analysis. I just don't think it's a good trade based on this method.

[Rich]

Hi,
Firstly, this is a great thread. I'm really enjoying te input of some experienced folks. Thanks to all.

I have some input. I have attached a chart. Do you think that the bounce in today's trading could have been expected due to the price previously bouncing from a similar level, or does the fact that the price has dropped below the 155.51 level on 5th mean that this line is in effect 'invalidated' until further strenghened?

Is that candle that formed on the 5th forming a 'master candle' now?

I strongly felt that when I saw the price move from the 155.51 it would carry on upwards, and have earned some nice pips from it ;-)

Regards,

Rich.

[phil838]

Originally Posted by Rich

Hi,
Firstly, this is a great thread. I'm really enjoying te input of some experienced folks. Thanks to all.

I have some input. I have attached a chart. Do you think that the bounce in today's trading could have been expected due to the price previously bouncing from a similar level, or does the fact that the price has dropped below the 155.51 level on 5th mean that this line is in effect 'invalidated' until further strenghened?

Is that candle that formed on the 5th forming a 'master candle' now?

I strongly felt that when I saw the price move from the 155.51 it would carry on upwards, and have earned some nice pips from it ;-)

Regards,

Rich.

I wouldn't say the bounce from 155.51 was "expected," but it certainly isn't surprising.

155.51 is, without a doubt, a good short-term S+R line. It may even be a long-term line, I haven't checked it out so I don't know.

It's not invalided because of the movement through it on Friday, but it was weakened because of it. I personally wouldn't trade a break or reversal off of it, but if you did and made some pips then great!!

This is more of an art than an exact science, if it looked like a good trade to you then by all means trade it. If you win you make money, if you lose you gain experience. It's a win-win situation as long as your using proper money management.

And yes, the 4H candle from 12:00GMT on Friday is a master candle. It broker a few minutes ago and would have been a loser had you traded it, but that's just the way it goes. It would have been a valid trade if you trade master candles.

I usually don't trade them and didn't even notice this one till you pointed it out, but since this one had a false break turned double bounce I'm going to trade it when it breaks again.

Hopefully it will break on the upper side where it will help strengthen our scalp line. That would be great!!

[yf6288]

Phil

Could please suggest how mant trades you take per week?

Thanks