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Holy Grail for 4 Hour Chart Scalping?

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StockyGuy

StockyGuy

Observe, Discuss, Apply
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Found this vid (just under 4 minutes long) on YT: http://au.youtube.com/watch?v=TLuvZ0quZ84

Looks extremely interesting method of using candle wick formations! It seems to suggest 50-100 pips are no prob (on Geppy) if you folow the technique, even though it may only present itself twice a week, or less, on a given pair.

Does it look fair dinkum? (I don't think the guy's trying to sell anything.)
 
It's not a bad technique by the looks, I'd be tempted to try it, but it's 4H!! ^hat means you need to be at your machine at 6am, 10am, 2pm, 6pm, 10pm and 2am invariably to see the candle formations. I personally wouldn't have the patience for it, are you testing it out now in a demo? or?

'Scalping' a 4H chart though? Hah. Does not compute (I equate scalping with fast(er) timeframes & trade length times that don't span more than a few minutes in most cases!, but that's IMO).
 
That was an example of a hammer and a shooting star.

He appeared to completely ignore an inverted hammer or a hanging man.

Also note, you have to be careful to determine if its a black or a white candlestick. Luckily in his chart, both were the right colour, but he did not point this out, only the wick.

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_candlesticks

Its usually good to also wait for verification in the next bar for the trend reversal.

How long were his candlestick timeframes also? Intraday, so I gather short, 5 mins?

Cheers
 
<pedant>I wouldn't call trading off a 4 hour chart "scalping"... more intra-day swing trading.</pedant>
 
Thanks, guys.

Yes, tayser. The timeframe is the prob for me also. I was looking at using with Oanda's 3 hour charts but its just not practical working f/t and having a typical Sydney work commute time as well. Long wicks of right body colour are also good sign of trend reversal in smaller time frames, though. (I'm not sure bout utility in VERY smal timeframes like I think you use.)

I've checked the guy's website/forum and he is a professional forex trader as far as I can gather. I guess the 4 hourly charts are ok for him. I'd possibly look into the technique more if take a bunch of annual leave. I did eyeball days n days of 3 hour charts and it supported his vid's concept.
 
4 hour chart, as in the entire chart (inclusive of all candles) is 4 hours in totality?

New to intraday setups.
 
MRC & Co said:
4 hour chart, as in the entire chart (inclusive of all candles) is 4 hours in totality?

New to intraday setups.
Click to expand...

Usually means 4 hour bars ie each bar is 4 hours. I am presuming that's what it means in this case.
 
Yeah, I think he said in the vid there were only 2 appropriate entries with the strategy in that week. Shorter timeframes would show a ton of long wick reversal patterns in any given week. This guy assigns FAR greater validity to 4H charts (1 candlestick = 4 hours) and the patterns he observes on them - I know from reading his free e-book.
 
tayser said:
It's not a bad technique by the looks, I'd be tempted to try it, but it's 4H!! ^hat means you need to be at your machine at 6am, 10am, 2pm, 6pm, 10pm and 2am invariably to see the candle formations. I personally wouldn't have the patience for it, are you testing it out now in a demo? or?

'Scalping' a 4H chart though? Hah. Does not compute (I equate scalping with fast(er) timeframes & trade length times that don't span more than a few minutes in most cases!, but that's IMO).
Click to expand...

Hey Tayser,are you still trading your Rainbow Style scalping method?
Was wondering what broker you are using,I really appreciate your time,
 
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