The strategy Forex «Trade of the mid-range» as follows:
Enclose a deal to BUY if the market rises above the middle (50% corrective movement on Fibonacci) from the last completed movement in the Forex market.
Bargain for SELL, if the market falls below the middle (50% corrective movement on Fibonacci) from the last completed movement in the Forex market.
How to apply the strategy
This trading strategy is poorly applicable to trade in the time ranges over several days. Rather, it is suitable for trading on intervals within the trading day and for those cases when it is necessary to keep the trading position of no longer than 2-3 working days. However, the technical analysis of graphs in any form must be done on the day and even week-long time intervals.
Determine the 50%-ing the border of Fibonacci one, or better yet — 2-lines are consistently completed the latest market trends are very often not a problem, but the question remains: «What shall we use to receive confirmation of this signal?»
I’m sorry, but the simple answer to this question is no — often near this border zone that few in the market suggests that would definitely happen in the market, and he in turn looks as though ready to move in any direction.
Output should be done about any of the Fibonacci levels or near local minima or maxima in the market — it all depends on what you want to make a profit, and whether they are commensurate with the potential risk of loss. An example of this strategy forex presented in the figure.
Fig. 1. Conclusion of the transaction for the purchase with an increase in market formed above the middle price range and sell at lower below the same level gave traders a good opportunity for profit. Prices on the market several times very easily raised from the middle zone of 10-12%, and fell from it as possible, even at great value. Profits were fixed at the boundaries of the trade price range.
