Medium term trades The most profitable trading strategy ~ learn forex news trading
The most profitable, least stressful and most sustainable trading strategy is medium and long-term trades. To be successful as a medium-term trader, what you need to understand fully is TIME. The four most important periods to understand are time to BUY, SELL, WAIT and TAKE PROFIT.
I have explained medium-term trade variously in some of my previous postings. However beginning from this week, I will on a weekly basis give my views on what I consider most profitable trading options with practical examples on three currency pairs GBPUSD, GBPJPY and USDCAD.
Trading long-term is only for those who have patience. It might take days or weeks to get signal but 1st class signals yield over 1000 pips and more. I will now illustrate when to bUY, SELL, WAIT and TAKE PROFIT (TP).
Sell - When the daily RSI is around 70 in the region of major resistance
Buy - When the daily RSI is around 30 in the region of major support
TPI - Take profit when RSI reaches around 50 point mark
TP2 - Take profit when RSI drops below 35 or less
WAIT - Do not buy or sell whenever Daily RSI is between 40 and 60 point marks
I inserted in the chart ForexTrend Locator which I fing very reliable for giving buy/sell signals on the daily time charts for these currency pairs. It is most useful guide for traders who do not have proper understanding of price action. Please note that ForexTrend Locator siginals given when the daily RSI is between 40 and 60 point marks are not valid.
Based on the above analysis, here are current my view for the three pairs:
GBPUSD
The pair currently in the waiting zone for medium-term trade
GBPJPY
The pair currently in the waiting zone for medium-term trade
USDCAD
The pair currently in the waiting zone for medium-term trade
I attach the charts in support of my views on these pairs. I will update these charts whenever there are signals for either buy or sell. Please note that my postings on H4 and M15 and concrete zones are still valid for short terms trades.
Happy trading!
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