7.22 Strategy 22: The 3-Duck System (Multiple Timeframe)

Have you ever bought a currency pair on the 15-minute chart because it looked incredibly bullish, only to get instantly crushed by a massive red candle? You probably didn't realize that while the 15-minute chart was bullish, the 4-Hour chart was in a massive downtrend. The 3-Duck System solves this. It forces you to align Multiple Timeframes so you never trade against the big banks.

Getting Your Ducks in a Row

The phrase 'getting your ducks in a row' means getting organized. In trading, it means aligning the Macro trend, the Medium trend, and the Micro trend. You only execute a trade when all three 'Ducks' are pointing in the exact same direction.

The only indicator you need for this strategy is the 60-Period Simple Moving Average (60 SMA).

The 3-Step Execution Checklist

Duck 1: The Macro Trend (4-Hour Chart)
Open your 4-Hour chart. Is the current price sitting above the 60 SMA line? If yes, the macro trend is Bullish. You are now ONLY allowed to look for Buy setups. If it is below, you can only look for Sell setups.

Duck 2: The Medium Trend (1-Hour Chart)
Drop down to the 1-Hour chart. Is the price also sitting above the 60 SMA line? If yes, the medium trend confirms the macro trend. You are cleared to proceed. If it is below, the ducks are out of alignment. Do not trade.

Duck 3: The Trigger (5-Minute Chart)
Drop down to the 5-Minute chart. Wait for the price to drop below the 60 SMA (a micro pullback). The exact moment the 5-Minute price aggressively breaks back above the 60 SMA, you buy. All 3 timeframes are now pointing up. You have entered a trade on a microscopic timeframe, but you have the massive momentum of the 4-Hour chart pushing your trade into deep profit.

Self-Evaluation Check