Forex Strategy «3-ducks» very simple and easy to use, like the majority of trading systems it is more productive in situations when prices move in a certain direction — for the trend, rather than in narrow trade corridors.
It allows you to quickly determine the ascending and descending oscillatory motion on Forex and make the correct entries into the market. It also allows you to successfully trade in the direction of the main trend.
- The strategy forex «3 ducks» setup used in 3 of the provisional date range: 4-hour (H4), hour (H1) and 5-minute (M5).
- Also we we will use only 1 indicator forex, which is in any MetaTrader MT4 — simple moving average Moving Averages with a period of 60 — SMA (60).
And so, what is forex strategy «3 ducks?
The first duck — the first step.
To get started, you need to review the schedule for the 4-hour interval. We need to find a situation where the current price in the chart below is a simple moving average SMA (60). The situation we find an example — this allows us to predict the course of events in the market.
Step number 2 or the second duck.
At the H1 interval, we need to find a confirmation of information from the price schedule, ie, a simple moving average SMA (60) in this interval should also be placed over the price. If it proves that the current price in the chart above moving average SMA, we should not jump to the next stage.
Step number 3 or the third duck.
So, we see that the 4-hour and hourly price schedule price moving average is below 60 SMA. Now we need to vzlyanut at 5-minute pricing schedule and to wait when the price crosses the rolling average of SMA (60) from top to bottom.
The deal could conclude as soon as the intersection of Moving at the interval of M5, but for additional confirmation is better to wait until a puncture on the M5 down past the minimum price, and only after that transaction zvklyuchat for sale. This would mean that at all three time-frames under consideration price is below the simple moving average, it is «3 ducks» are moving in one direction.
Insurance stop-loss strategies for forex «3 ducks»:
You have options:
- If you are a short-term trader, you can place your stop-loss insurance on a maximum 5-minute or hourly price schedule.
- If you are a position trader and trading in the medium, then perhaps you’d like a top stop-loss over the last maximum 4-hour price schedule.
- Even in the same option — you can use a fixed stop-loss insurance size 25-30 points from the entrance to the market.
- In any case, for greater security and protection of its profits recommend using trailing stop with the sale (its size depends on the time interval and the volatility of currency pairs — 10 to 50-70 points).
Profit, you can not set or set to expand Fibonnachi or at local maxima or minima.
For trading positions in the long side (for buying) — need to seek out cases where the price is above the simple moving average — 60 SMA at all 3 time intervals.
To select the best trade in the following currency pairs: EURUSD, GBPUSD, but it is possible that you can also work on the other currency pairs. Also, the best time to trade is the European and American trading session.
