When To Enter Scalp Line Breaks
Scalp lines are much simpler to enter. However it is still not just a case of entering instantly on a line break. You should still take momentum into account in much the same way you would for a S+R line break. I am not going to explain momentum again since it is the same in application to scalps as it is to S+R lines so the explanation is on page 20.Beyond this there isn’t much to write about entering a scalp line trade. All it takes is a little practice, just keep candle momentum in mind.
Picking Scalp Targets
You can also use a simple equation to pick your scalp line targets. Everything is pretty much the same except for scalps you divide by 5. Again you will probably need to tweak the target slightly over time, but dividing the ADR by 4 gives you a good starting point. Here is an example:GBP/JPY ADR = 281 pips
281 / 5 = 56.2
GBP/JPY SCALP line target = 55 pips
In reality I use a 50 pip target for my GBP/JPY scalps but this gets you very close. I have tried it on 10 different pairs now and every time it has given me a good target to start with.
How Long Do Scalp Lines Last
I would not want a normal scalp line on my chart for any longer than 1 month. If it is a very strong scalp line I may keep it on my chart for up to 2 months. A strong scalp has to have rejected a major trend or even possibly a medium strength trande but had two or more bounces. 90% of scalp lines would not be left on my chart longer than 1 month if they are not broken.If a scalp line is broken it should be removed immediately. I only ever use a single scalp line one time and them I remove it.
