The 3 Duck's Trading System

[Tess]

I’ll stick this in here just to maintain the flow of the subject matter. It kinda fits in with the Captains theme, given that upon entry, prices will likely remain in step with the 3 Ducks etc.

The final obstacle for today (U.S new home sales) has been hurdled, so we’ll now revert to technical positioning ahead of tomorrows small basket of data releases, headed up by the measure of consumer inflation (the PCE index).

The large hourly chart shows us that Monday & Tuesday’s pullback did indeed attract demand at the higher low zone (2.0120) & is now well placed to kick on thru this niggly s&r barrier up here @ 0270 if the ‘longs’ have sufficient fuel left in the tanks.

Obviously, the b/o level this morning @ 2.0160-80 will need to be adequately defended, as that will be the initial destination for any blow off from todays highs.

Barring any fun & games, prices ought to attract decent company anywhere around this upper tier (2.0200 – 2.0270) to mount a determined push onto the months highs @ c2.0360.

If not, & this dogged climb merely confirms another lower high on this timeframe at current levels, then we’ve got option of drilling down to the smaller timeframes on the sniff for an appropriate (early) signal to the short side.

I guess we’ll see the color of the Cable money tomorrow!!

[Captain Currency]

Hello Traders,

Did you see the Ducks on REUTERS website yesterday?

Kind Regards,

Captain Currency.

[Tess]

Originally Posted by Tess

Obviously, the b/o level this morning @ 2.0160-80 will need to be adequately defended, as that will be the initial destination for any blow off from todays highs.

Barring any fun & games, prices ought to attract decent company anywhere around this upper tier (2.0200 – 2.0270) to mount a determined push onto the months highs @ c2.0360.

I sure hope one or two of you availed youself of that groovy little activity back there at the 2.0200 earlier?

Not only did the 15m frame tip the nod, but the hourly bar was also closing well up it's pole, helping to confirm the validity of this higher low step support!

See how strong the Bulls are now as we lead into the final trading session(s) of the quarter!

Chocs away?....

[Mr Average]

Originally Posted by Tess

I sure hope one or two of you availed youself of that groovy little activity back there at the 2.0200 earlier?

Not only did the 15m frame tip the nod, but the hourly bar was also closing well up it's pole, helping to confirm the validity of this higher low step support!

See how strong the Bulls are now as we lead into the final trading session(s) of the quarter!

Chocs away?....

I did! For once, I called it right and I'm still in with a quarter at 2.0284. I actually deviated a bit from my strategy on entry, which I know i shouldn't, but the evidence of a long move seemed to be mounting (support at 00 level, a touch and reversal on the 1 hour 60 sma just below that) and, well, I dived in a little earlier than I would ordinarily. Once the move was confirmed I stuck to my plan though, and I intend to ride the remaining quarter for all it's worth.

Thanks to everyone participating in this thread. It's been a great help this week.

[Tess]

Cool, well done Mr A.

Hang onto that 1/4 for dear life!!

If they get a decent backwind now, there'll be no stopping them.

Especially if it's cousin (Euro) manages to hurdle 1.4190+

That level is worth watching closely for any counter punch activity - which is highly likely given the level

[Captain Currency]

Hello Traders,

WOW Tess & Mr Average you have been busy this am, Good trading WELL DONE!

I personally took the Ducks signal earlier this am on Gbp/Usd, I bought at 2.0235 when prices crossed the last high and the sma on the 5 min chart - All 3 Ducks Lined UP! my stop-loss was placed 30 pips away from the entry, it would have been too expensive to place the stop-loss under the last low (about 40 pips) so I used a fixed stop-loss instead. I took profit just before the past daily high. A 30 risk for a 60 pip reward and a fairly painless trade, a great way to spend your Friday morning!

Have a great weekend guys,

Captain Currency.

[pkffw]

Hi Captain,

Interesting system you have here. I like the simplicity.

I was just wondering one thing. Do you need to get in as soon as the ducks line up with a close above/below the 60sma on the 5 min chart?

I ask because many times I get home from work(in Australia so trade the london open in the evening my time), turn on the computer and find that all the ducks line up but it's many bars after they first lined up. Sometimes I can see that a big move has already been made, other times not. Just wondering if I should by pass the set up if it is some time after initial "lining up of the ducks" so to speak?

Cheers,
PKFFW

[Captain Currency]

Originally Posted by pkffw

Hi Captain,

Interesting system you have here. I like the simplicity.

I was just wondering one thing. Do you need to get in as soon as the ducks line up with a close above/below the 60sma on the 5 min chart?

I ask because many times I get home from work(in Australia so trade the london open in the evening my time), turn on the computer and find that all the ducks line up but it's many bars after they first lined up. Sometimes I can see that a big move has already been made, other times not. Just wondering if I should by pass the set up if it is some time after initial "lining up of the ducks" so to speak?

Cheers,
PKFFW

Hello PKFFW,

Me personally I like to trade the "first" part of the move but thats not to say you could'nt buy a pullback somewhere along the way. The only issue I would have & as you pointed out yourself - Will the move continue?
This is where your own market knowledge and the 3 Ducks system help each other out. Is there a correct answer to your question? no!
The best thing you can do is have a house swap with me, I will go and live in your house in sunny Australia and you live in my house in wet and cold Ireland. That way the timezone will allow you to be in front of your pc when the action is happening! What do you think, deal or no deal?

Kind Regards,

Captain Currency.

[pkffw]

Originally Posted by Captain Currency

Hello PKFFW,

Me personally I like to trade the "first" part of the move but thats not to say you could'nt buy a pullback somewhere along the way. The only issue I would have & as you pointed out yourself - Will the move continue?
This is where your own market knowledge and the 3 Ducks system help each other out. Is there a correct answer to your question? no!
The best thing you can do is have a house swap with me, I will go and live in your house in sunny Australia and you live in my house in wet and cold Ireland. That way the timezone will allow you to be in front of your pc when the action is happening! What do you think, deal or no deal?

Kind Regards,

Captain Currency.

Ireland......hhhmmmm........terrific place to visit. Reminds me of my swimming pool though........nice to play in but wouldn't want to actually live in it though!

Yeah I figured it would be best to get in on the move at the start. I actually watched that GU move unfold. Came in just after that retrace when it was taking off. Very annoying to miss it. Still at the stage where I have to go to work to earn a living though and sometimes I just can't help getting home a tad late!

Cheers,
PKFFW

[Cowaboi]

Anyone spotted a likely 3 ducks for tomorrow?

I'd like to forward test with GBP/USD and EUR/USD initially and while there could well be a 5min signal from both tomorrow sometime, i can't help but think that the big boys won't want to be buying at these levels.....will they?