Three Ducks Binary Options Strategy
Another binary options trading strategy is one that involves very easy steps that can be performed even by novice binary options traders. The Three Ducks binary options strategy is quite easy to implement. Aside from this, it also has the potential to provide good returns if performed correctly. The idea of this strategy is to analyze and make trades based on multiple time frames that are indicative of the trends relating to each other.
The strategy’s name Three Ducks comes from the common phrase “get your ducks in a row”, which means to make preparations for a certain task, or to become efficient and well organized. If you have seen a family of ducks swimming in the pond, you will likely see them lined up neatly in a row. This is what this strategy is all about as well. It sets up trades in order to make fruitful profit out of them. All of this is done using different charting
The Three Ducks binary options strategy is a pretty straightforward strategy because it all the binary options trader needs to do is to follow a set of guidelines. While this strategy, has a very low complexity that is perfect for most novice of traders, it does not mean that it can not be used by expert traders as well. If executed correctly, the strategy almost always ensures that a binary options trader can minimize his losses in entered trades.
The Three Ducks strategy is a lesser known binary options strategy, and has been published by experts just recently on different trading advice websites. One thing is common among the analyses of the strategy: that it is relatively easy to master and deploy. This trading strategy is based on the use of three charts and the repetitive checking of these charts. The trades are entered manually requiring almost no prior special knowledge aside from the basics.
Perhaps the first concept that a trader should learn for this strategy is the use of multiple
To give an example, an hourly frame could indicate that the price of an asset is currently pushing through a bullish trend. On the other hand, a longer
In turn, the trader can now compare findings with the intent of rejecting or verifying a viewpoint on the current visible trend. The Three Ducks strategy revolves around this concept. Basically, a trader will aim to get his three ducks in a row by studying the directional movement of an asset on trading charts using three different
Although we have mentioned that this strategy is easy to implement that even novice traders can perform it, some experts advise against it saying that it is not ideally suited for new traders because of the significant amount of skill and knowledge required to implement it correctly. Whether to use it or not is the trader’s choice. For those wondering, the Three Ducks is not a new concept as it has already been popular among Forex traders.
Mechanics of the Strategy
The Three Ducks strategy, as the name implies, involves three steps and three
The current position should be noted and the initiative to buy should only be deployed if the price is above 60 SMA, denoting an upward trend for the market. If it is lower, disregard. Next, we consider a shorter
It may be the case that the trend is bullish on the broader
Lastly, the trader should consider the shortest
The stop loss can also be minimized with this if the trader defines a range above or below which he wishes to buy or sell. This depends on whether a trader trades by the day or is a long term trader. Nonetheless, the process is usually used in trading the major currency pairs, and also other exotic pairs. Timing for this strategy is especially important when major trading in currency pairs are affected by special instances that pose the threat for ranging markets.
Here’s a concrete example of the mechanics outlined above. Let’s presume a trader considering a certain asset. To implement the three ducks, he first needs to select three ‘ducks’ or
Analysis for duck 1 is done by studying the 4-hour trading chart. Basically, the trader’s mission is to confirm whether the 60 SMA resides above or below the current price value. If price is higher than the 60 SMA, then a bullish trend is present and possible opportunities may exist to activate new CALL binary options. In contrast, if price is below the 60 SMA, then a bearish trend is prevalent indicating that selling opportunities may be present.
Analysis for duck 2 or the one hour chart is then performed. By doing so, the trader aims to verify that this chart also confirms the same verdict as duck 1. If it does, the trader can now proceed on to step 3. However, if the one hour chart contradicts the findings of duck 1 by revealing an opposite trend, then the trader needs to completely reject this asset and move onto others by starting again.
Finally, the trader inspects duck 3 or the 5 minute trading chart. If this
As each of the three ducks performs a specific function in this setup, a trader can acquire a very good verdict by implementing this strategy. The four–hour time frame serves to identify the current and prevalent trend; the second acts a secondary confirmation and the third helps identify quality trading opportunities. Consequently, the trader can gain an
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