Median Price

Architects have a knack of showcasing staircases in homes they design. They speak of transporting you to different levels of the house to enjoy. However, as anyone who has climed a staircase can tell you, "What goes up must come down". Traders have always known that prices tend to move from one level to another much like stairs in a home. The trick has been to know at which level to buy and at which to sell. The Median Price Strategy is an easy to use method that employs a counter-trend style of trading. Counter-trend trading is used by contrarian traders of all markets employing the philosophy of "Buy Low, Sell High". It is the idea behind Dollar Cost Averaging and Grid Trading.

This strategy is setup on the daily chart and seeks to take advantage of price movements over longer periods of time and is best suited for rangebound markets. When price reaches certain levels you can benefit by acting as a contrarian trader, looking for bargain basement prices on currency pairs. Traders can use this approach on any currency pair and bank on the likelihood that price will need to leave through the same door it came in.