Currency forex market applies a series of rules and technologies to bring you to success. Successful online foreign exchange trading means combination of knowledge, skills, practice and luck. Foreign exchange brokers tend to say that lucky are those who can successfully apply their knowledge and skills on practice. The longer is your practice, the deeper is your knowledge. But if you are just starting, currency trading basics may be your starting point. We offer you free forex training by reading our articles.

Point 3

Medium range trading. Rules of using the medium line are as follows:

• Buy if the market is exceeding the 50% correction of the last complete market move.
• Sell if the market is receding the 50% correction of the last complete market move. This technique is hardly applicable if it goes about modern markets in terms of over several days. It’s better for trade cycle not longer than one day and if it’s necessary to retain a position not longer 2-3 days. But the analysis should be carried out on the basis of daily and even weekly charts.

It’s not a problem to define a 50% medium line of one or two sequential complete market actions. The question remaining is: what can be used as a proof? Sadly, there is no definite answer to this question. Normally it’s hard to get a proof of a medium line as in this case the market will seem to be ready to move in either of the directions. Therefore only observing the market behavior at the moment of crossing the medium line may give you some idea about possible further market moves. Online trading allows doing all of this. Entering a market using this theory has a logical leave point that is assured by the trade range where the position should be closed.

Other variants offer leaving the market close to any of the Fibonacci levels – depending on possibilities of profits and losses.

Part 1: Forex Exchange Markets: entering market -1
Part 2: Forex Exchange Markets: entering market - 2
Part 3: Forex Exchange Markets: entering market – 3 (Foreign exchange brokers should know)
Part 4: Оnline foreign exchange trading: entering market – 4
Part 5: Currency forex market: entering market – 5
Part 6: Free forex training: entering market – 6