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Monday, July 15, 2013

The goal of any trader, trading strategy

The goal of any trader, trading strategy
 The goal of any trader is to keep to the major rules of trading in buying high and selling low. This however is probably easier said than done because it is not easy to identify trade entries and trade exits. Therefore it is a prudent trader who works on several strategies which help identify the appropriate entry and exit points. Some trading strategies are fairly complex but for a newbie trader in particular there are some strategies which are simple to understand and easy to execute in order to acquire Forex trading practice. One of these strategies is called the three duck strategy and it uses three time period price charts and a 60 period simple moving average.
How to Trade a Three Ducks Forex Strategy:
 This particular strategy involves using a 4 hour price chart which is the first duck, a 1 hour price chart which is the second duck and a 5 minute price chart which is the third duck and a 60 period simple moving average. The idea is to make sure that all the ducks are in a row. How do we do this?
 The first task we need to do is to take a look at a 4 hour price of the currency pair we want to trade in. The chart below is a EUR/USD 4 hour chart and we have added a 60 period simple moving average line to the chart.

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