The situation when the price movements are in a strict directed trend, not in the narrow price range, is common enough for the market. And in this case the stable forex strategy which is called "3 ducks" is the most effective strategy, moreover due to its simplicity it is used quite often.
It should be mentioned also that the stable forex strategy concept is a kind of a vague term, in this article we would like to show a high probability for making a profit provided that all strategy conditions were met.
"3 ducks" strategy helps to identify existing upstream and downstream movements, and therefore have the opportunity to enter the market in the best way, and to make the biggest profit from the trade. Setups of this strategy are used within three time intervals, namely, H4 (a four-hour period), H1 (a one-hour period) and M5 (a five-minute interval). This strategy rests on the basis of a forex indicator, which is available in any terminal MT4 - 60 -day SMA.
The Stable Forex strategy "3 ducks" requires a number of conditions to be me. A trader can open the order in the right direction provided that all three ducks are used.
The first duck. The first step.
Initially, the graph of a 4-hour period should be analyzed and the trader should wait for a moment when the current price will be located under the SMA (60).
The second duck. The second step .
To move further, let’s observe the one-hour chart. Here we are interested in information that will confirm the previous information which was obtained from the first chart. Hence, the SMA (60) in this period should not fall under the price, it should be over it. If this condition is not satisfied, and the price is higher than SMA, the trader should wait for the moment, when the price fells below SMA (60).
The third duck and the third step.
When all the conditions described above are satisfied, further analysis of the 5- minute chart should be conducted.
Once the SMA (60) crosses the price when it declines and the price is raising in the M5 period, it the time for sending an order to sell. If, however, the breakdown of the local minimum occurs at the same time, one should consider as a sign for the transaction that is to sale even more.
In this case, one can see that all periods of time, which were a subject to the analysis described above, have a price value under the SMA (60), and hence a stable forex strategy indicates that all three ducks move in one direction.
We analyzed the traders’ plan of actions when he or she forms the situation suitable for sale. The stable forex strategy should enable the trading in any direction to give an opportunity to the trader to make profit all the time. If one desires to use the strategy “3 ducks” for purchasing rather then sailing, the strategy should be the same but with one important difference, namely the price should be above the SMA (60), and do not fall below it during all three period of time.
The strategy "3 ducks" presented above provides the possibility to show the trader the best direction for transaction in the shortest period of time. And its simplicity is in the fact that this strategy is based on the usual observing of the current trend. Source: Dewinforex
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