You’re attempting to trade that pair during the 24 hour time zone when it’s least effective to do so.
If I were you I’d stay in the safety net of a demo account until you become fully conversant with some of the basics of trading this market.
If price is already up on 5 minutes chart then you don’t need to wait for it to go blow the 60 SMA and vice versa. If you see the pair is also trending up in a 5 minutes chart and all your ducks lined up then you need to wait and see if the price has passed or broken an established resistance level and as soon as it does you need to enter the trade. Andy has clearly mentioned this in his book. If you have not read the book than request a copy from Andy and keep this book with you. Its pretty simple, if the price is trending above on 5 minutes chart you need to enter when it passes the previous high (resistance) and in case of short you need to enter when price goes below the previous low (support). Hope this helps.
thanks friend for your reply…because many times it happens that price is above on 60 SMAs on 5min and 1hr chart but not above 4hr chart…its obvious because it takes time on 4hr chart…
But you must take the trade only when price is above/below on all three time frames and the 5 minute chart is your entry chart. You need to see the price above/below and also crossed a previous high or low on 5 minutes chart only. In case of 4 hour and 1 hour it dose not require to cross a previous high or low. That is only for the 5 minute chart.
what is the meaning of previous high on 5 minute chart ?
please explain with image…thanks
Hi mehulpopat,
I have a suggestion to make trading the 3 Ducks easier. If you use a MT4 broker then you can go to the MetaQuotes web site and find two indicators Color_MA.mq4 and MMR_HighLowLines.mq4.
The first is a moving average indicator which changes colour from green (UP) to red (Down) I suggest you add this to your 5min chart set to 60 periods and check its set to SMA not EMA.
Then add the moving average indicator again to your 5 min chart, but change the green to blue and the period to 720, as this will mimic the one hour SMA.
Then add the moving average indicator for a third time to your 5 min chart, but change the green to magenta and the period to 2880, as this will mimic the four hour SMA.
In this way you will be able to see the price in relation to the moving averages all three colours and you are looking to go long. All three at red you are looking to go short.
Now add the MMR_HighLowLines indicator set the period to 48 and the colour for the mid line off. This will draw a line from the highest high and the lowest low of the last 48 periods or four hours on a 5min chart. Looking back at least four hours will also indicate the market making new highs on the 1 hour and the 4 hour.
So now you wait until the price action breaks above the higher MMR line when you have all three colours for a long trade. Below the lower MMR line when all three MA’s are red for a short. I found that setting up my single 5 min chart like this made it easier to trade the 3 Ducks, as everything is on one chart.
When andy was sending out his three times a week reports this MMR indicator would always nail his suggested entry points.
Experiment with the look back period on the MMR as I found 72 worked well on the Yen pairs also in backtesting I found the Yen pairs worked best when traded between 16:00 to 24:00 GMT. Don’t know why it made no sense, but there you have it.
This setup gives you a good visual indication all on one screen. I also suggest an initial entry stop on the 60 SMA and that you use the opposite MMR line as a trailing stop/get out point. What I mean is leave you stop at the initial entry position but if the market closes below the opposite MMR get out of the trade. Don’t trail your stop on the MMR as you may get spiked out, and the market move higher.
Happy Duck hunting, Trader009.
thanks Trader009…
Amen Brother! They’ll just need to read the eBook once, twice, three times …
[B]Andy
Captain Currency.[/B]
Howdy mehulpopat,
You’ll need to read page 7 of the eBook, images are there too! Also, have a look at the short video below for an extra lesson.
[B]Andy
Captain Currency.[/B]
Trader009 and Andy both explained it above before me and I would not be able to explain it this better. A previous high is the resistance point and a previous low is a previous support point. If you dont know about Support and Resistance you need to read about it and also make sure to complete babypips school here. It will give you much info. I am not good at drawing support and resistance lines (High and Low) myself so I use a custom indicator called “Support and Resistance (Barry)”. You can use this or use the one suggested above by Trader009. I tried to attach this indicator but I always get the error. You can google it to download. Its free. This indicator draws these high and low lines automatically.
In the below chart the green dotted lines represents previous highs and the yellow dotted lines represents the previous low. Now when price breaks the high on a 5 minute chart that is your entry point and if you are late you need to see if their is another established high and when price goes above that its your 2nd entry level:
Now have a look at the below image. Price is trending down on the 5 minute chart but we will enter when it clears or goes below the yellow dotted low point:
Please note I am mentioning this again that you only need to see price break a high or low on the 5 minute chart only. I hope I am clear.
thanks kashif314…
You are welcome. If you need to know anything more please feel free to ask. I ll try my best to explain. Also please make sure to read the 3 Ducks ebook by Andy and read it again and again. It will help you as most of the times things went unnoticed but when we read it again we know about it.
Hi All,
Following on from my earlier post here is an example of my 3 Ducks 5min chart. The market has been volatile lately and good trading examples are hard to find.
As you can see when all the moving averages are coloured and you make a new high you go long. Hopefully you can see the small blue arrows. The yellow arrows indicate a cross of the 60 SMA. Also note how the lower low line could be used to trail the price.
Happy Duck hunting Trader009.
from your chart we can see that in 5 min. chart previous high at very large price so if we have to wait for that high to enter buy position ?
Hi Kashif314
Please could you tell me what platform you use to get your charts. A lot better than the ones I use.
Many Thanks
WH
Its the same Meta Trader 4 platform. I have just zoomed in a little and added some indicators.
Been trading the fx markets since 2010. Was searching high low for something that works for me. Tried price action, from position to swing to intra day to indicators. You name it i’ve tried it!
Finally developed something that’s called my own. Suits my lifestyle and personality.
Then i chance upon the 3 ducks thread and realised how similar it is to what i’ve developed.
Would i save lots of time if i was handed this approach to trading from the initial start? No!
Because i would system hop after a period of drawdown and find the next best thing. After these years of trading, keeping it simple is key!
Thus trading is a journey. Having to go through the initial stages of learning everything and then slowly filtering out the stuff that matters. From then on to build something you believe in which suits your lifestyle and adding your own personal touch to it.
Good trading everyone!
Pairs i’m looking at this coming week would be the JPY weakness.
I’m favouring both eurjpy and gbpjpy.
Between the 2, i’m favouring the gbpjpy.
Also audnzd and wti are trending really nicely now.
Cheers!
Hi fartist,
did you take a long on the gbp/jpy? I took a trade on the European open this morning and made my profit target. It was a higher probability because of fundamental and technical all coming together. Viva la three ducks!
Hi Druej,
Nope i didn’t take the GBPJPY trade. I trade similarly to the 3 ducks approach but added with my own discretionary touch to it with the experience i gained over the years.
Another pair to look out for is the GBPUSD. All 3 ducks are lined up, now waiting a retracement on the 5mins chart to get a long entry.
It could either consolidate before breaking upwards or have a sharp V shape pullback. I would like the earlier to happen.
Cheers!