ok something is fishy here lol.
I have entered short on 152.33 GBP\JPY after the price broke a strong scalp and neck line at 152.37 . Within a few short minutes I reached my SL and loosed 50 pips.
What have I done wrong?!
I am waiting for this trade for about two days already.
Maybe I need to wait a bit more and only after I see a major break of the price I enter? I didn’t do that because I have seen Nick’s last video and he enters exactly when the price touches the scalp line…but I waited for an extra 4 pips. Maybe it is because the price action wasn’t perfect?
I just wanna learn for my mistakes so if anyone here was following the GBP\JPY in the last hour and can help me figure out what was wrong I will be glad.
I do not thing it just was a loser…I am sure I have done something wrong…bu what
You didn’t do anything wrong, it was just a loser. Scalp lines only win 65-70% of the time when you enter them without regard to news, price action, etc…
This one just happened to be a loser. I’ve taken 3 trade this week and I’m at 2 losses and 1 breakeven, so it’s not just you.
Thanks phil for encouraging me.
But I still think I done some thing wrong and I am quite sure it is the bad price action. It was struggling and didn’t pass the scalp line smoothly. Also the half hour before was a very up and down time for the price…going 2 pips foreword and one backward. But this is the lesson for me this time.
I can’t comment about the price action, since I wasn’t watching it and even a 1M chart is too long for those quick movements, but I’ve been entering scalp lines blindly for 1.5 years using pending orders and I’ve made a ton of money off them.
But then again, Nick does take price action into account and he has a higher win rate than me, so if you want to watch PA then go for! I’m just saying you don’t [B][I]have [/I][/B]to watch it.
Also, if you haven’t been trading scalp lines long then you need to know we’re having a really bad losing streak (the worst I’ve ever seen) with them recently. So you can probably expect them to perform a little worse than usual for a while longer.
Last month was my first losing month ever on scalp line trades.
I figured it out! We were just the victims of a bad coincidence. The GBP MPC Meeting Minutes (a really big news event) were released at 8:30 GMT, the exact time the scalp line was hit.
That’s what caused the 50 pip movement back up… It was a badly timed news spike.
I usually don’t worry about new spikes when it comes to scalp lines. Sometimes they hurt you (like today), but sometimes they help you. I’ve had scalp lines hit my TP because of news spikes, so it all evens out in the long-term.
Got ya phil!!!
I told you we made a mistake here and it wasn’t just a looser na na na
That is a good sign for me cause if that one was a looser without a good reason so I do not know what isn’t a looser.
By the way, where do you check news? I must make it an habit.
Benji:
losses are always more painful than gains. my losses linger for more than half a day in my heart, but my gains give me a faint smile, then quickly, I forget and ‘LET ME GO GET MORE PROFITS!’
so often I think I am at a loss position for the month, but turns out a small gain.
wonder if there is some hypnotherapy that works for me…
Phil:
Is your 156.50 still in place? G/J chart looks heavy, and 146.71 is too far for this week.
I figured it out! We were just the victims of a bad coincidence. The GBP MPC Meeting Minutes (a really big news event) were released at 8:30 GMT, the exact time the scalp line was hit.
That’s what caused the 50 pip movement back up… It was a badly timed news spike.
I usually don’t worry about new spikes when it comes to scalp lines. Sometimes they hurt you (like today), but sometimes they help you. I’ve had scalp lines hit my TP because of news spikes, so it all evens out in the long-term.
I echo this sentiment heartily, Phil. I’ve had as many wins as losses from news, so I don’t give it too much concern either.
My order didn’t get hit this morning on 152.38, but I have a pretty big cushion these days (9 pips, counting my allowance for the spread). I just missed getting triggered. I’m hoping that since we’ve seen a good rebound off of the line that it helps to validate this as a solid scalp on the next trip back down, even if the rebound was news-related.
Phil, One thing I am not clear on the scalp lines or I didn’t read it properly the NickB method. How do I determine whether I should go for a long or short on a Scalp line ? Nick in weekly analysis predicts which is short or which is long… Though I have not taken this scalp line and I took one previously which turned out as a loser… Since then I was not sure how do I determine the direction… Can you please help here ?
You enter when price crosses the scalp line (plus a buffer if you’re using one). So if the line is above the current price it can only cross in the long direction, and if it’s below the current price it can only cross in the short direction.
So basically all the scalp lines above the current price are long trades, and all the lines below the current price are short trades.
Would using a zigzag indicator help with finding the swing high and low points? Google “nonlagzigzag_v2”. You can play around to find the parameters that frame the scalp lines best.
I have a scalp line at 156.45 and the price is 156.22 now.
We are going to have or a breakout up, or a reversal.
I have checked the news today and it seems that the USD will go strong today in two more hours. I am quite new to all this business so there is a chance that I am saying a dumb thing - If the dollar goes strong than the Yen will weaken. If the Yen will weaken so the Pound will go a bit strong. Makes any sense?
I thought about it cause I remember phil showing me that all the charts with the Yen look very similar, so the USD\JPY and the GBP\JPY chart may look the same. That is the reason I hear people say that the USD news have an effect also on other currencies?
