The very easy-to-use “3 ducks” strategy is more productive when the price moves along the trend. It can be used to determine the upward and downward price movements. To all this, the strategy allows you to make the right entries to the market.
In this strategy, the settings are applied in three time ranges:
Also used is a forex indicator – a simple moving average Moving Averages, the period of which is 60 – SMA (60).
The principle of the trading system “3 ducks”:
First, you need to analyze the chart on a 4-hour interval. It is necessary to find a situation in which the current price is below the average SMA with a period of 60 on the chart. With this situation, we can predict the course of market events.
It is necessary to find confirmation of the information provided by the first chart on the hourly chart – on this interval, the SMA (60) should also be located above the price. If the price is trading above the average, then you need to open a 5-minute chart and wait for the moment when the moving average SMA (60) the price crosses from top to bottom.
Immediately after crossing the MA on the M5 interval, make a deal. It is also recommended to wait on M5 for additional confirmation of the breakdown of the last price minimum downward. A sale transaction should be concluded after all conditions are met.
Stop loss size
– It is possible to set a stop loss just above the highs of a five-minute or hourly candlestick in short-term trading.
– For medium-term trading, you need to set a stop loss at the high of the four hour candlestick.
– It is possible to use a fixed stop-loss in the amount of 25-30 points.
For the greatest security, as well as to protect your own profit, it is recommended to use a trailing stop when trading.
To open a long position, you need to look for such cases when the price is above the average 60 SMA on all three time frames.