The medium-term trading strategy is a method based on medium-term time frames that range from several days to 1-2 months. The advantage of medium-term trading is that you can trade successfully doing other things at the same time. This strategy seems more appealing to traders than the short-term strategy. All intraday noise is filtered out, and the main forecast is made for the future. In this case, time makes money.
The theoretical possibility of the medium-term strategy is based on the “long memory” of the market. This means that the support and resistance levels formed at a given moment can stay relevant for a long time. Thus, the medium-term fluctuation channel on major currency pairs can range from 150 to 400 points
. It is recommended to open positions not less than 30 point
above (below) the channel levels, while the stop loss order
should be placed not less than 50 points
. The medium-term strategy gives an opportunity to make significant profits but only if the open position is held for at least several days.