NickB's 4H Scalping Method

[phil838]

Originally Posted by jvolkova

I'm not sure if anyone has been trading JPY pairs today using this strategy...
GBPJPY - swing low - 156.86 broke - short trade - took profit of 100 pips
NZDJPY - 62.03 broke - short trade - took profit 100 pips

Stil have positions open -- all +++

Hi Jvolkova,

What did you have as a stoploss on the 156.86 GBP/JPY trade? If you were using 50 it would have been a loser.

You're looking for swing highs/lows with a significant change in direction for this system, not just any high/low.

I'm not saying your way won't work, just that it probably won't work with a 50 pip stoploss.

[phil838]

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

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.

[phil838]

Originally Posted by Max99

Does anyone have a link to Nick's pdf? I searched but can't find it.

Thanks,
Max

Here it is. I'll also edit the first post and put it there as well.

[lavaman]

Originally Posted by phil838

I don't see a line around 153.44. Could you post a picture?

I've got 160.45 on the long side and 143.00 on the short. A possible new line is forming at 155.67 but it's not ready yet.

Those are the lines I have as well. I see the 153.44 line (looks more like 153.20 to me) but it's pretty weak. There wasn't much of a retracement to that point so I won't be going short there.

[phil838]

Originally Posted by lavaman

Those are the lines I have as well. I see the 153.44 line (looks more like 153.20 to me) but it's pretty weak. There wasn't much of a retracement to that point so I won't be going short there.

I agree. See the picture below for more areas that are not valid scalp lines.

[Louise]

Has anyone ever tried Nick's method on the GBP/JPY one hour chart. I'm very new to this but it looks as though if may be possible? Thank you

[phil838]

Originally Posted by Louise

Has anyone ever tried Nick's method on the GBP/JPY one hour chart. I'm very new to this but it looks as though if may be possible? Thank you

It's possible it could work, but you'd need a lower stoploss and profit target.

I personally wouldn't trade it on 1H charts. The strategy works due to the initial momentum generated by a lot of trader buying or selling at once.

The lower the time frame you go the less momentum there will be, because less traders will be seeing that line.

[Louise]

Originally Posted by phil838

It's possible it could work, but you'd need a lower stoploss and profit target.

I personally wouldn't trade it on 1H charts. The strategy works due to the initial momentum generated by a lot of trader buying or selling at once.

The lower the time frame you go the less momentum there will be, because less traders will be seeing that line.

Ah yes...momentum. That makes sense. Thank you for the advice.

[bzltop]

Phil, what broker do you use?

I have an account with IG Markets, do you know if they are any good?

[pipsrgood]

Originally Posted by phil838

It's possible it could work, but you'd need a lower stoploss and profit target.

I personally wouldn't trade it on 1H charts. The strategy works due to the initial momentum generated by a lot of trader buying or selling at once.

The lower the time frame you go the less momentum there will be, because less traders will be seeing that line.

My broker is Oanda, and they offer a 3-hour chart, but not 4-hours. Would this system work on a three-hour, or would I need to take the trades off my four-hour demo charts?