Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

76.5% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

Three ducks trading strategy

Three ducks trading strategy

2019-11-11 • Updated

Information is not investment advice

Today we are going to explain a system which requires the usage of a moving average. It is a strategy developed by professional traders.   It is called “Three ducks”. The name may seem strange, but it comes from a quite common phrase “get your ducks in a row”, which means to be well-prepared for a certain task or to become more efficient. Have you ever seen the family of ducks swimming in the lake? Usually, they tend to swim in a row. This is how this system works. It helps a trader to make a "row" of actions to achieve a better result. As with most of the setups, it is implemented during a trend.

So, what do we need to start using this system?

Three ducks trading system is as easy as a pie. It helps you to find the upward and downward movements in the market. You do not need to download complicated oscillators or look for specific patterns. All you need is to consider three timeframes: M5, H1, and H4. The only indicator that you need is the 60-period simple moving average, which you can find in any platform.

Analysts recommend implementing this system while trading EUR/USD or GBP/USD.

Let's look at what "ducks" make up this strategy. We will take the EUR/USD pair as an example.

The first duck

At first, we look at the largest timeframe (H4). We see if the current price is above or below the 60-period SMA.

  • If the current price is above the 60-period SMA, we consider opening a long position;
  • If the current price is below the 60-period SMA, we consider opening a short position.

On May 29, we could see that the 60-period MA was moving above the price on the H4 chart. That is, we will be looking for a selling opportunity.

1 (6).jpg

Ok, we caught the first duck! Let’s look if we can find more proofs on the smaller timeframes.

The second duck

During the second step, we look at the H1 chart.

  • If the first duck gave us a bullish hint, we need to see the current price above the 60-period SMA as well.
  • In case the first duck signaled to open a short position, the current price should be below the 60-period MA.

Important notice! If the conditions above are not met and the price acts differently than at the first step, we cannot move to step 3.

On the H1, EUR/USD was placed below the 60-period SMA. So, we felt confident enough to consider the third step.

2 (4).jpg

The third duck

Now, on the M5 chart, we are waiting for a crossover.

  • If we are looking for a buying opportunity, we wait for the price to cross the 60-period SMA from bottom to top.
  • If we want to sell, we wait for the price to cross the 60-period SMA upside down.
  • If you want to be 100% sure you need to wait when the price breaks the closest local minimum/maximum.

This situation would mean that price on all of the charts (all of the “ducks”) are moving in the same direction.

When you place you take profit?

You can place your take profit near the previous minimums or maximums, or trail your stop and follow the direction of the price.

Let’s look at the final example.

On M5, we waited for the price to cross the moving average from top to bottom and waited for it to break the previous local minimum. We opened a short position at 1.1161. Our stop loss was placed at 1.1170 (above the previous high) and we took profit higher than the previous support at 1.1149.

3 (4).jpg

Conclusion

This strategy helps you to consider the price movements and use them in order to find more profitable opportunities.

Similar

Pin Bar Trading Strategy

Sometimes a chart or a candlestick pattern may provide a decent entry signal if it is located at a certain level. A pin bar is one of the most reliable and famous candlestick patterns, and when traders see it on the chart, they expect the price to change its direction soon.

Japanese Candlesticks: a Complete Newbies’ Guide

Have you ever wondered how many wonderful tools did Japanese people invent? QR codes, car navigation, instant noodles, and sushi are just some of the Japanese things we can't imagine our life without.

Money Flow Index Trading Strategies

Among hundreds of different indicators and technical tools for traders, the relative strength index (RSI) is one of the most popular due to its simplicity and, at the same time, its power in various trading cases. In this article, we want to tell you about another powerful tool similar to RSI but with some cool tweaks.

Choose your payment system

Feel the Team Spirit

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later