The system is quite simple and easy to use. Like many of the trading systems will be more productive when prices are moving in one direction and not stuck in a narrow range. Of course, this system has lost trade and losing runs, but with good money management and good discipline I’m sure this system will keep him out of bad trades and give you a great opportunity to gain market currency. One of the nice things about this system is that it quickly tells you if prices are at a stage drive up or down and stop guessing! It also lets you decide to be a bull or a bear and trade in the direction of that trend. There are three lists involved in this system: a 4-hour chart, a graph of 1 hour and 5 minute chart. There is a flag, a period of 60 simple moving average (SMA 60) is in each box. There you go, that simple.

How it’s  works?

Step 1 – First Duck
The first thing we have to do is look at our main frame of time (Chart 4 hours) and see if current prices are above or below the moving average of 60. From this graph we can see that the current price is below the SMA 60. This tells us that maybe trying to sell.

Step 2 – Second Duck
The second thing we have to do is reduce our figure of 1 hour. We need to see the current price below the moving average of 60 in this table also, this gives us confirmation.
Important: If the current price is to be above the moving average of 60 in this table could not go to step 3.

Step 3 – Third Duck
From step 1 and 2, current prices should be below the 60 SMA at each table. Now we are in the 5 minute chart and we are looking to sell when the price crosses below the SMA 60. For additional confirmation should let prices break the last low figure of 5 minutes. This would mean that prices below the 60 SMA in the 3 periods, so the 3 ducks are lined up in the same direction.

Stop-Loss:This is where you can make this system yourself. If you are a short term trader you may want to put your stop-loss above the maximum in 5 min and 1 hour chart. If more than one operator may want to place your stop-loss above a high on the 4 hour chart. You can also use a fixed stop loss, perhaps 25 to 30 or more points of entry. It all depends on what kind of trader you are, so you decide! Another “trick” that can help preserve capital, if you sell and the prices back above the 5 min 60 sma by 10 pips (not a good sign) you may want to cut their losses shortly before his stop-loss. But if you are a long term trader this may not be a problem for you.

Targets:Same again, depends on the type of a trader are but target can be support or resistance levels.

Summary:The above example took place when the GBP / USD is trading lower so obviously we were selling – the system works equally well for buying opportunities, just look for prices above the moving average 60 in the 3 periods, starting with step 1 again. I love this system because it does not try to out guess the market movements and gather the top and bottom. The system quickly tells you that a buyer or seller. It’s a good honest system that tries to follow prices. This system works best in pairs of currencies like the euro / USD and GBP / USD, but there is nothing to prevent us from establishing this system in any pair, but as we know that some pairs act differently to others. I found the best time to trade this system is the European and U.S. sessions. Be careful to observe what happens around you – economic new releases, holidays, etc.