Sometimes, an expression "everything of ingenious is simple" pertains to Forex market. Probably this phrase was the motto of people who established Three Ducks strategy. This method is so straightforward as well as understandable that every novice is able to comprehend it quickly and also quickly. Moreover, a trader does not need to download any type of unique indicators, as all we require is offered in any kind of trading system.

Strategy specifics and indicators

The major indication used in the "3 Ducks" technique is a moving average with the period 60 as well as the application cover on Strategy, as displayed in the number over.

Trading will certainly be carried on the basis of this sign. For finding points of protective orders, we make use of Fibonacci retracement levels from the last lows and highs.

So, when setups are done, an investor can start browsing signals. This treatment can be split into 3 phases.

The primary sign made use of in the "3 Ducks" method is a relocating average with the duration 60 and the application cover on Strategy, as shown in the figure above.

Trading will certainly be continued the basis of this indicator. For finding points of protective orders, we make use of Fibonacci retracement levels from the last lows as well as highs.

So, when setups are done, a trader can start searching signals. This treatment can be split into 3 phases.

Phase 1

Initially a trader shall analyze four-hour timeframe and also contrast the position of the cost versus to the moving average line. Our graph reveals that the price level is listed below the white line; as a result it is not anticipated that the price will alter direction in the near future (naturally, on problem that there will certainly not be necessary news releases).

Stage 2

Now, allow's switch over out attention to the per hour graph and look for verification. The rate is listed below the moving average. We can conclude that the worldwide fad is coming down; so in the temporary, it is recommended to open sell positions. We will rule out signals to purchase until the moving average line goes below the price level.

Stage 3

The third step or a "Duck" as it has been called by the technique makers will be done on the five-minute duration where we will browse access signal. We have a signal to open up a sell setting if, after going across the moving average line from top to bottom, the cost will certainly combine there. The graph shows that it has not occurred yet; therefore, an investor will not open a buy placements as the main rule of trading recommends not to trade versus fad. We bear in mind that, according to the higher timeframes, worldwide trend is descending.

Authors of this method advise traders to make use of currency pairs with high volatility and also profession on the European and American trading sessions since even during these sessions an indicator will certainly offer just few signals.

Protective orders

Traders are advised to choose among the means of positioning safety orders depending upon the trading strategy:

1. For the long-lasting trading: stop-loss level is at the high or short on the four-hour timeframe. Based on the money-management guidelines, take-profit order is put at the range at least twice as much as the distance between the price level and the stop-loss level.
2. For the medium-term trading: the stop-loss level is the following factor of Fibonacci grid. If Fibonacci degree is 20 factors more detailed to the point of opening a profession, it is advisable to utilize the following level. Take-profit is positioned on the contrary line of Fibonacci grid, in accordance with finance rules.
3. For the short-term trading: stop-loss is put at a distance of 20-30 factors from the opening price. After closure of five candle holders in the desired instructions stop-loss is relocated closer to the moving average line and then to the break-even zone. For benefit an investor can utilize the choice of routing quit with the settings to move after getting to 20-30 factors in the wanted instructions.

As you can see, the method is extremely straightforward; nevertheless it does not consider some elements, which can impact rate activity.