Strategy 3 ducks
Forex Strategy "3 Ducks»
Forex Strategy "3 Ducks» is very simple and easy to use, as most trading systems, it is more productive in situations when prices move in one direction - the trend rather than the narrow trade corridors.
It allows you to quickly determine the ascending and descending oscillatory movements in the forex and make the correct entries into the market. It also allows you to trade successfully in the direction of the primary trend. In forex strategy "3 Ducks" set-ups used in ranges 3 temporary time: 4 hour (H4), hour (H1) and a 5-minute (M5). Also we we will use only one indicator, forex, which is in any trading platform MT4 - simple moving average Moving Averages with a period of 60 - SMA (60).
So, how does forex strategy "3 ducks"?
first duck - the first step.
First you need to analyze the schedule at 4-hour interval . We need to find a situation where the current price on the chart located below the simple moving average SMA (60). This situation we find an example - it allows us to predict the course of events in the market.
< br />
Step number 2 or the second duck.
On hour chart we need to find confirmation of information from the first chart, that is, a simple moving average SMA (60) in this interval also must be over the price. If it turns that the current price on the chart above the moving average SMA, we should not jump to the next step.
< br />
Step number 3 or the third duck.
So we see that the 4-hour and hour chart price is below the moving average of 60 SMA. Now we need to vzlyanut on a 5-minute price chart, and wait until the price crosses the moving average SMA (60) top-down .
transaction can be entered immediately after crossing the MA in the range of M5, but for further confirmation and better to wait on the M5 down the breakdown of the latest price low, and only then zvklyuchat deal to sell . And it would mean that at all three time frames considered price to be below the simple moving average, that is all "3 ducks" are moving in one direction.
safety stop-loss for forex strategy "3 ducks":
You have options:
If you are a short-term trader , you can place your safety stop-loss above the highs on the 5-minute or hourly chart.
If you are a position trader and trading medium , it is possible to place a safety stop-loss over the last maximum 4-hour chart.
still the same option - you can use a fixed safety stop-loss order size 25-30 points of entry into the market.
In any case, for greater security and protection of its profits would recommend to use trailing stop the trade (its size depends on time interval and the volatility of the currency pairs - 10 to 50-70 points).
Teyk-profit you can not bet or raise by extension Fibonnachi, either local maxima or minima.
For trading positions the long side (buy) - you need to look for cases where the price is above the simple moving average - 60 SMA at all 3 time intervals.
Conclusion: Forex Trading Strategy "3 ducks" quickly tells you what to do - sell or buy. It is quite simple and based on a simple follow the current trend.
For Trade is best to select the following currency pairs: EURUSD, GBPUSD, but it is possible that you can also work on other currency pairs. It is also the best time to trade is the European and American trading session.