Detailed explanation of the three ducks foreign exchange trading system

The three ducks in the name of the system are derived from the phrase: "Arrange all the ducks together", which means to get everything in the right order.

There are three ducks in total: the first duck helps you determine whether the general direction of the market is up or down; the second duck helps you identify the trend direction; and the third duck helps you identify specific entry opportunities.

The system uses three time periods: H4 (first duck), H1 (second duck), and 5 minutes (third duck).

The system uniformly uses the 60-period simple moving average (60 SMA) as the basis for judgment.

1. The first duck

Start by looking at the H4 major cycle chart to see if the current price is above or below the 60 SMA line. As shown in the chart above, the current price is above the 60 SMARaise one's headRun, so we can consider going long.

2. The second duck

Then switch to the H1 time period chart and see that the current price is also above the 60 SMA line, which further confirms the trend direction.

Of course, if the current price is below 60 SMA, there is no need to look at a third duck.

3. The third duck

Judging from the previous two ducks, the current price is above the 60 SMA line. At this point, we look at the 5-minute chart, and when the price crosses the 60 SMA upward, we can consider entering the market long.

For further confirmation, we can wait for the price to break through the recent high on the 5-minute chart. This means that for all three time periods, the price is above the 60 moving average, so all three ducks are aligned in the same direction, forming a signal of upward movement.