NickB's 4H Scalping Method

[NickB]

Yeh the bltiz should be great I just added a free mini video course to it.

GBP/JPY is boring today. Running away from the yearly high line. What other pairs do you guys trade? Any trades anywhere else?

[NickB]

I’ve got 162.57 on my charts now. I know Nick liked it earlier because it was the yearly high, but I’m just now putting it on my charts because I didn’t like the small retracement distance earlier.

I used to give the yearly high some weight, but in my opinion the fact that we’re getting a new yearly high every week now has really lessened the effect of them.

Yeh you have a point phil. If you saw my weekly analysis I said that I would trade it but I much rather see a reversal from the high first. This current reversal has confirmed the line for me. It is now a strong line on my chart.

[Pukey]

I’ve been using a 50 pip stop and a 50 pip TP.

Thanks man. I’ll start playing around with it.

[Pukey]

I admit it, I broke the rules! Please forgive me.

I shorted GBP/JPY at 159.76 for +50 pips. I know it wasn’t exactly a scalp line but price got really close to there 3 times last week so I rolled the dice with half my usual lot size. It worked out, but did I just get lucky?

[phil838]

I admit it, I broke the rules! Please forgive me.

I shorted GBP/JPY at 159.76 for +50 pips. I know it wasn’t exactly a scalp line but price got really close to there 3 times last week so I rolled the dice with half my usual lot size. It worked out, but did I just get lucky?

There’s some legitimate short-term S+R around there, but I wouldn’t have traded it.

At worst I think you’ll end up with a 50/50 win rate making trades like that, so as long as you’re using good money management it couldn’t hurt to experiment.

[ThePhoenix]

I think we may have another scalp line forming at about 158.85. Have to wait and see if it gets a trend going strongly away from it.

[dobro]

Is the GBP/JPY normally a good pr for the NY session? Or does it pretty much unwind around 08:00-0:900 EDT? I have usually stuck to the Big 6 for NY play and have never done much with cross prs. but maybe I’m missing out on a good thing. d

[Jack_B_PIP]

I was also looking at the 158.85 area. Went short at 158.80. Positive 130 pips right now. Since I could monitor right now. I did not set a take profit at 50 pips.

[phil838]

I was also looking at the 158.85 area. Went short at 158.80. Positive 130 pips right now. Since I could monitor right now. I did not set a take profit at 50 pips.

What caused you to get in at 158.80, Jack?

I’m not saying I disagree with it or anything, I just don’t see anything special in that area.

[Jack_B_PIP]

After 4 months of pratice & reading a lot of different methods etc…, I decided to try for real. That was June 1. I picked 3 methods that appear to fit in with the amount of time I am able to dedicate to trading FX and fit my style. Sunday Breakout, Tymens Candlesticks, and NickB 4 hour. At that time (june 1) I drew 3 scalp line ranges. 154.83, 155.71, & 158.87. That same day it spiked to 159.19 So when the trend has been going down quickly over the past 2 days and broke both of those lines I decided to take the short trade. Also, taking into acct the trend was coming off the yearly high & reading the news for Europe & Asia. I also have lines at 160.49, 161.26, & 162.46.

[newbietrader]

Took my first trade with this system on EUR/JPY. I went short at 133.82 and it hit my take profit at 133.27. I made it more than 50 pips to make up for the spread. My stop loss was 134.27. Is that how it’s supposed to be done or should I not add the spread to the stop loss and take profit?

[NickB]

After 4 months of pratice & reading a lot of different methods etc…, I decided to try for real. That was June 1. I picked 3 methods that appear to fit in with the amount of time I am able to dedicate to trading FX and fit my style. Sunday Breakout, Tymens Candlesticks, and NickB 4 hour. At that time (june 1) I drew 3 scalp line ranges. 154.83, 155.71, & 158.87. That same day it spiked to 159.19 So when the trend has been going down quickly over the past 2 days and broke both of those lines I decided to take the short trade. Also, taking into acct the trend was coming off the yearly high & reading the news for Europe & Asia. I also have lines at 160.49, 161.26, & 162.46.

There is not line in that area. Looks to me like you just got luck and caught a nice bearish trend. Unless your trading a variation of my method…

[johnnykanoo]

156.43 is coming into focus as a possible bearish scalp line. right now we have 2 candles trending back up from that level.

Im also wondering if that dip was a response to russia’s comments about the usd being the reserve currency for the world. If so then that knee jerk response was only a little blip and the gbpjpy will continue its very strong uptrend.

[Dane]

Nick mention another trader trading the USD/CAD, and I understand that this system is based on the GBP/JPY, but are there any other pairs that are commonly traded with this method?

I’ve been trading this method for a while and using a few other pairs. I’ve pretty much refined it to 8 but some I def like more than others.

If you guys have meetpips then check out my blog at MeetPips.com — Private Beta for screenshots and details of what I trade and why. If you need an invite just PM me your email. It would be good to have a few more people trading this method with me to compare trades and analyse trades/setups.

[Hypochondriac]

Quick question can you still use a scalp line if the price broke above it then went down? I didn’t get in on that first Breakout. Or do I have to wait for another scalp line to appear?

On june 3rd there appears to be a scalp line at 160.45

[ThePhoenix]

Quick question can you still use a scalp line if the price broke above it then went down? I didn’t get in on that first Breakout. Or do I have to wait for another scalp line to appear?

On june 3rd there appears to be a scalp line at 160.45

No, you are not supposed to use scalp line if they are broken and the price goes down. A scalp line is good until it is broken once. 160.45 has already been used.

A scalp line is formed by a [B]RECENT[/B] spike or dip in price, with at least a short trend before it and after it. When it comes back to one of those lines look to trade a line break, or if you see reversal candles forming at the line a reversal.

S&R lines can be used more than once provided the breaks are reasonably far away.

The current scalp lines to watch are: 162.59, 156.43, 154.82

P.S. get the free e-book if you havn’t already, it’s very clear about not re using scalp lines.

[Hypochondriac]

No, you are not supposed to use scalp line if they are broken and the price goes down. A scalp line is good until it is broken once. 160.45 has already been used.

A scalp line is formed by a [B]RECENT[/B] spike or dip in price, with at least a short trend before it and after it. When it comes back to one of those lines look to trade a line break, or if you see reversal candles forming at the line a reversal.

S&R lines can be used more than once provided the breaks are reasonably far away.

The current scalp lines to watch are: 162.59, 156.43, 154.82

P.S. get the free e-book if you havn’t already, it’s very clear about not re using scalp lines.

Thanks. I’ll start reading in today. The 156.43 and 154.82 lines are for shorts right?

[ThePhoenix]

Thanks. I’ll start reading in today. The 156.43 and 154.82 lines are for shorts right?

Yep, if price breaks the line. If it starts to form reversal candles at the line look for a long.

[orpips]

Personally I don’t have the 156.43 line yet. The move away was strong in terms of pips, but was only one candle; doesn’t show a deliberate move away from the price so much as a quick spike, and it is already on the way back.

[Pukey]

Personally I don’t have the 156.43 line yet. The move away was strong in terms of pips, but was only one candle; doesn’t show a deliberate move away from the price so much as a quick spike, and it is already on the way back.

I must agree.