To [B]Phil838 [/B]:
Now I have the lines 158.49, 158.60 and 154.86
You have lines 158.57 and 160.45
For a moment I thought you added a buffer to my lines to get yours, but clearly not so.
So where did you get your lines? 
For me to understand, I think you will need to post a chart. 
Thanks for that!! 
A long time mystery for me solved. 
Keep in mind the nickb method doesnāt try to predict a large movements ahead of time.
Iāve found, so far, that with this method itās just best to go with price action as it behaves
Point taken.
No more predictions.
How bout getting tottally on the nickb method boat,
I am going to wait on Phil838ās response to my above question first since I think I may be confused.
Hey Tymen,
Iām sure your 158.49 and 158.60 are the same lines as phil838ās 158.57. Thatās close enough to just be a difference of charts. Your 158.49 was just the bounce of the 158.60 (or 158.57) line. That would not be two separate trades.
Your 154.86 line isnāt a scalp line yet because not enough candles have formed in the retrace from that point. Nick B likes 10 candles to form on the H4 chart as I understand it, but sometimes people will take trades if only 6 or so have formed as phil838 mentioned a few posts ago.
Yeah, I agree with everything Lavaman said. 158.57 is the top of the June 4th 8:00GMT 4H candle on my IBFX charts. The difference between yourās and mine is probably just small differences in broker price feeds. Iād go with whatever your broker says.
Hopefully the weekend gap will be nice to us and not ruin the scalp line.
Also, Iām not going to trade the line if it breaks before London open on Monday morning. These types of trades depend on sudden price spikes and the volume is usually too low to get good momentum before then.
Hereās a great example of different traders using their own judgment to find different lines and not following the ārulesā.
On Nickās blog this week heās considering 154.82 as a valid scalp line, even though it only had two candles between the formation of the line and 350 pip retraction. Thatās definitely breaking his own ārules.ā
I disagree with that line and wonāt be trading it, but it just goes to show you that this is a thinking manās trading system, not a mechanical one.
heās considering 154.82 as a valid scalp line,
why is that not considered a good scalp line? I thought the criteria was there had to be a good trend movement up to the scalp line. I didnt realize it matters if the market moves up fast afterwords. Also In a huge bull market im noticing a change in sentiment at least for the moment which would lead me to think a short at 154.82 would be a good move.
There needs to be good trend movement up to the scalp line and back away from the line.
This one, in my opinion, doesnāt have a good movement away from the line.
And I agree with you, a short around there is a great trade based on chart analysis. I just donāt think itās a good trade based on this method.
Hi,
Firstly, this is a great thread. Iām really enjoying te input of some experienced folks. Thanks to all.
I have some input. I have attached a chart. Do you think that the bounce in todayās trading could have been expected due to the price previously bouncing from a similar level, or does the fact that the price has dropped below the 155.51 level on 5th mean that this line is in effect āinvalidatedā until further strenghened?
Is that candle that formed on the 5th forming a āmaster candleā now?
I strongly felt that when I saw the price move from the 155.51 it would carry on upwards, and have earned some nice pips from it 
Regards,
Rich.
I wouldnāt say the bounce from 155.51 was āexpected,ā but it certainly isnāt surprising.
155.51 is, without a doubt, a good short-term S+R line. It may even be a long-term line, I havenāt checked it out so I donāt know.
Itās not invalided because of the movement through it on Friday, but it was weakened because of it. I personally wouldnāt trade a break or reversal off of it, but if you did and made some pips then great!!
This is more of an art than an exact science, if it looked like a good trade to you then by all means trade it. If you win you make money, if you lose you gain experience. Itās a win-win situation as long as your using proper money management.
And yes, the 4H candle from 12:00GMT on Friday is a master candle. It broker a few minutes ago and would have been a loser had you traded it, but thatās just the way it goes. It would have been a valid trade if you trade master candles.
I usually donāt trade them and didnāt even notice this one till you pointed it out, but since this one had a false break turned double bounce Iām going to trade it when it breaks again.
Hopefully it will break on the upper side where it will help strengthen our scalp line. That would be great!!
Phil
Could please suggest how mant trades you take per week?
Thanks
I usually take anywhere from 0 to 3 scalp line trades per week. It just depends on how many form and get broken during the week.
As for total trades, around 5 per week.
Originally Posted by Phil838
Yeah, I agree with everything Lavaman said.
Ah, that brings clarity!!
I will look now at the charts to see what is happening now.
But I must also get back to my candlesticks thread.
The work there is pressing and I must complete the thread with the final PDF file.
Thanks for your kind reply.
In that case, assuming 80% win rate and 2% per trade, the capital increment per week will be 6% per week. In that case, I must it is really promising way.
Is that whay you got so far?
Nick says he getās an 80% win rate, and I have no reason to doubt him, but over the last 1.5 years Iāve gotten a 70% win rate.
Either way, itās a profitable strategy!
Another cool system. Iām a huge fan of s/r and horizontal lines on charts in general, they are what make me money, so Iāll give this a look.
Well, what a climb today. Steadily up all the way.
The price just edged to within a gnatās whisker of the scalp line and is retreating. I guess this line will be further strenghened now then, if on the formation of the next candle the price goes down?
Rich.
Looking at the 4 H candles, it looks like an ascending triangle, which would strengthen the possibility of a breakout. Iām thinking it might break when the asian session kicks in.
Ah, I see.
Thanks ThePhoenix.
Just to make sure I understand you - you mean that there is an area of resistance, which repeatedly fails to be broken with successive lows getting higher (nearer) to it?
Iām watching my charts now. So you suspect there may be a long break?
Rich.
Yep, basically a horizontal resistance line + a diagonal resistance line. If it breaks back down out of the triangle, then the triangle is rendered meaningless, and we are back in this range, ping ponging. I donāt think this particular triangle is really strong, but it is there.
Iām thinking that possibly with the asian session and more traders kicking in, the break might happen. When the asian session kicks in at 7 here, there are three differrent sessions overlapping. May be enough to push it.
At this point Iām waiting for either the break of this scalp line, or for price just to retreat back down and head towards, 154.82. If I start seeing reversal candles, that go straight horizontal from this point, I might start planning a reversal trade.
These are all possibilities though, Iām not trying to predict any movements. That would get my head in trouble, as then I would be mentally commited to what I think will happen, instead of acting on what actually is happening.
So, far Iāve only done line trades with nickbās system, missed a trade last week because I didnāt see the reversal.
Hello I am a new trader and new to this site. I have been read all about NickBās system this weekend, here and his blog.
I saw today that he said he wasnāt trading the 158.60ish line.
NickB Says:
June 7th, 2009 at 6:12 pm
I have already been asked this question by a few people. My answer was:
Where is the trend leading up to the line and the trend leading away? All I see are two random bounces one as it was dropping and another from a news spike. You could argue that last week I used a line that had no trend leading away but at least it had a trend leading to the line and it was a yearly high.
Remember the e-Book we are looking for V, U or L shaped bounces.
In my opinion it is at very best a weak line and I personally would not trade it.
Has this line now become a stronger line after todayās activities and is there now a shorting line at 156ish?
