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.