Three Ducks Trading Strategy Binary Options 2020

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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.

Multiple Analysis

Perhaps the first concept that a trader should learn for this strategy is the use of multiple analysis. This is a method that resolves considerable difficulties experienced by traders in determining the current trend of their chosen assets. Traders use multiple analysis because different often provide varying opinions. Instead of looking only at one , the trader is provided with multiple dimensions to work with.

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 could demonstrate that the overall trend is actually bearish and that price is merely undergoing a temporary bullish retraction. Expanding the time frames actually gives traders a more complete view of what’s going on regarding the price of an asset, as opposed to having a limited view of price movement.

If multiple are not analyzed, traders are provided with conflicting results that can lead to the adaptation of a range of varying viewpoints about the current directional movement of the same asset. Multiple time frame analysis can remedy such problems and provide a system that can give traders more accurate interpretations. The idea is for the trader to study the price action of selected assets using both long and short .

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 . If their findings are , then the trader would have identified the true trend.

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 first step is to use a common SMA. Most references to this strategy use the 60 SMA, so we’ll adopt that as well. To start the strategy, the trader first looks at the biggest time difference in the chart he uses. What the trader should be looking for is whether the current price is above or below the 60 SMA chosen.

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 and compare the current prices again with the 60 SMA. This allows the trader to drill down on the true nature of the trend as he can look closer at the present market trend as compared with the broader in the first step.

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It may be the case that the trend is bullish on the broader and bearish on the narrower . It can also be the case that they may show the same trend. In this case, the trend is true and validated. If the 60 SMA line is again above the current market price, the trader is able to get confirmation that the price is going in the right direction, and he is on the right track. Again, if it is not above, he disregards, stops, and starts over.

Lastly, the trader should consider the shortest to confirm his suppositions. This provides him with yet a more magnification of the current market trend. If the trader wants extra validation regarding the trend, he looks for the price going above than the last high while still being above the 60 SMA line. This represents a good buying position and a Call option may be placed here. If the reverse is true, selling positions prevail and the trader should make a Put option.

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.

Example Procedure

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 . For this example, we will use 5 minutes, 1 hour, and 4 hour. The trader then installs a 60-period simple moving average (60 SMA) technical indicator on each of the three charts. This will be the basis of whether the price trend remains true or not.

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 again confirms the trend verified by ducks 1 and 2, then this is a strong signal to execute either a Call or Put binary option, depending on the trend. If the 5 minute chart does not produce evidence confirming that of the first two ducks, then the trader should abandon this asset and instead seek others by reapplying the strategy from the first step.

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 understanding about the price movement of assets by undertaking such a study.

You can learn about many strategies on our website. To try out this strategy, you can also choose from among the top binary options brokers we have compiled. Stay tuned for more tutorials from our site.

„Three Ducks“ Trading Strategy

Another simple trend following strategy is the „3 ducks“ trading strategy which can be used by beginners to those more accomplished traders as well. It uses various analysis forms and explains how getting your ducks in a row can help you earn a profit from binary options.

This strategy looks at the analysis of multiple frames for trading short term. The reason it is more effective for short term trading is that the signals are worked on 5 minute charts but work off a foundation of long term trends. Your „ ducks „are the time frames. If you work on 5 minute, 1 hour and 4 hour frames and a 60 bar moving average, you have the basic set up for the 3 ducks strategy.

How does it work?

Basically the price movement is captured over the time-frames as set above ( 5 minute, 1 hour and 4 hour ). Based on the 4 hour chart, it becomes a bullish trend if the chart prices are over the SMA. When this occurs, you look at the 1 hour chart to confirm the trend. If the prices on the 1 hour chart are above the 60 bar SMA, then you know your 4 hour chart is confirmed. You then look at your 5 minute chart.

If the price trend is confirmed and matches up to the 1 hour and 4 hour charts, then you can look at taking bullish trading opportunities. If the prices are not above the SMA you will need to wait until they cross over. When a cross over happens, you could look at this as a buying signal as well. When looking at bearish trading, work on the opposite premise. If the 4 hour shows as bearish, look to the 1 hour and 5 minute charts to back this up and wait for a signal for put buying.

Why use thy strategy? Why not?

A well known, successful trader wrote this specific strategy and it is accurate and well presented. The information is detailed and the analysis is done over multiple time frames, improving accuracy while helping negate conflicting signals. It is a great strategy for short term trading and there is more than one indicator.

The strategy is simple to understand and easy to implement and can be used from amateurs to traders that have been around a while, quite successfully. Have more than one indicator and using 3 time frames improves the accuracy of this well developed strategy. As with any strategy, this one is not foolproof though and for even more accuracy in trend predictions, you might want to look at daily and weekly chart results as well. This strategy also offers a lot less risk than some of the others that are offered to new people for short term binary trading.

Binary Options ‚3‘ Strategy That Works + Video

While we go haywire finding a reliable trading system, we tend to miss out on the obvious. Three indicators strategy ensures high potential profits as it produces exact entry signals confirmed by 3 indicators. Moreover, it can be used with all sorts of currency pairs. This strategy that works is based on three most popular indicators; Relative Strength Index, Simple Moving Average and Full Stochastic Oscillator. You can think of trading binary options on much higher level when you’ve integrated these indicators.

Download the strategy, that works

Watch the video below to see how the strategy works

However, there is no denial of the fact that every trader comes across a situation in which one indicator that is used by almost all the traders, sometimes show inaccurate signals. So, using additional indicators will help in filtering out the false signals. Read on to learn about the three different indicators that just work mentioned above.

Relative Strength Index

The so called ‘RSI’ focuses on the price direction, unlike the ones that mostly look at the overbought or oversold price. In this binary options trading strategy the RSI level 50 decides whether the trend is bearish or bullish. If the RSI is more than 50, then a rise in the price is expected.
However, call option buying will occur if the RSI value is more than 50, but lesser than 70. On the contrary, buying put options is suggested if the RSI value falls somewhere between 30 and 50.

Stochastic Indicator Signals

Not only is it very well known for oscillation, but also for its technical analysis capabilities. The direction of the oscillator coincides with the price movement direction. You need to find stochastic between 20 and 80 as this will let you know about the present overbought or oversold asset.

Personally I like to filter signals in two ways with this indicator:

  • either: Stochastic crosses 80 (for put) or 20 (for call) line
  • or: Stochastic is pointing upwards (for call) or downward (for put)

Moving Average

Different strategies developed at the intersection of Moving Average with so many different periods shows the right moment during which the market has taken an unambiguous direction, whereas the traders have decided to either purchase or sell an asset.

There’s a ton of strategies including Moving averages. For example:

Combining all these will result in a great strategy!

Here you can see how all the indicators work in real time Trade on stochastic reversal with RSI on the right side

Video: Testing the strategy, that works

In the video below, you can see a few testing trades with this strategy. Let me know in the comments if you like it!

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    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
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    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

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