NickB's 4H Scalping Method

[cjgranfl]

The only two pairs other than GBP/JPY that I've used the the ADR-based target calculations are the USD/CAD and GBP/JPY. In both cases I've found that the ADR/4 or ADR/5 (if ADR for the last few days has been below the longer term ADR), have both worked out well.

I do use a buffer too, and that part is kind of arbitrary since that has to be based upon past experience. I got the 9 pip buffer I use on USD/CAD from Metalhawk, a trader on Nick's blog and it's definitely necessary there because of all of the times price will just peek above a scalp line and then reverse. I use a 6 pip buffer on GBP/JPY and I'm doing the same on GBP/USD. This buffer is in addition to accounting for the spread. I'm on Oanda which charts the average of bid and ask values, so I add half of the spread into my buffer for both long and short orders. With that said, I'm looking at going forward with a S&R zone approach to breakout trades so that will factor into a buffer between a scalp line and where I'll set any pending orders.

Cody

[s050399b]

excellent info!

[zekelogan]

how's everyone faring this week so far?

[orpips]

Loss on long @ 152.40. My own fault for setting my entry at 152.48 instead of at a more sensible 152.53 or so, to take into account possible effect of the round number. Although I notice in retrospect that neither Nick nor Metalhawk took that into account either, which is odd (or at least they didn't mention they did).

[cjgranfl]

Orpips, I lost out on this one too and was thinking my entry was too close to the scalp too. It's broken further above the scalp, so just about anyone would be in the trade now if they weren't in the earlier peek above the line. I guess we'll see how it goes for them.

Cody

[zekelogan]

I took that loss as well. No biggie. There was a 34EMA break slightly below which I figured would give it the push it needed, but markets were pokey today.

Seems normal after a fairly large day yesterday.

[MattW2009]

Yup I'm with Cody on the loss as well. Despite placing my order in the right place for a change! Hopefully the markets will be willing to give me some pips soon...

[MattW2009]

How do you guys like the scalp from yesterday's (Wednesday) high?

[zekelogan]

I'm eyeing 155ish as well. Thoughts anyone?

[cjgranfl]

The 155.30 level doesn't look too bad; it didn't retrace from that area too strongly but there's another bounce from the area back on the 6th. What do people think of entry at 155.50 as a safety measure? It's possible an entry around the 155.30 level could stall out around the psych level.

Cody