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. 
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.
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.
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.
Ah yes…momentum. That makes sense. Thank you for the advice.
Phil, what broker do you use?
I have an account with IG Markets, do you know if they are any good?
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?
I haven’t had any dealings with IG Markets personally. I don’t recall hearing any horror stories about them, and they are a regulated broker, so they should be safe and reputable.
I used Oanda and have had no problems with them.
EDIT: Right after I posted this their server went dead. 
I should say I’ve never had any [I]major [/I]problems with them. Little things like this happen to all brokers every now and then.
I’d trade off a 4H demo chart myself, but the scalp lines on a 3H chart should correspond to 4H lines at least 90% of the time.
If you wanted to do it I think it would be okay.
You could also place your trades in Oanda, but do your chart analysis elsewhere. I use a free non-expiring metatrader demo from FxPro, I think other brokers offer similar deals.
Hi Phil,
On GBPJPY I always go for atleast 100 pips ( with other pairs 50 works best).
and 50 pips stop loss would of worked no problem…
Also I tried this on 1h chart … its works great…but I only try to trade during London session…
Julia
You’re right, Julia… I checked again and at a 50 pip SL that trade would have been a winner. I must have been looking at the wrong line or something…
I never though of restricting the 1H trades to the London session. That would help with the momentum problem!
Also, it’s nice to see a female posting on these forums. I’ve never understood why this place is 95% male. There have to be more female traders out there??
I also find that with this strategy you can stay in the trade longer and make 700 - 800 pips per trade …so it can be used perfectly for longer trades as well as short …
:rolleyes:
and as for the females on this forum…they are all out lookin for the rich male forex traders 
hahahah j.k
Check that…lol…from what I’ve seen we’re doing ok and are better off getting rich for ourselves…95% of traders fail…and 95% on here are males…slim pick’ins!
LOL, burn.
Hi Julia. Are there any pairs that you don’t trade with this method? It seems that USD pairs aren’t mentioned here yet.
Everyone else’s input is welcome here too.
Ok, well, I go with that since I’m new at using nickB’s method.
My chart looks pretty much like yours at 153.44. So, that isn’t support because price more or less moved sideways there?
To make it a stronger support line we’d want to see price move away AND THEN return and have a bounce off that line?