Medium-term trading in forex bound the holding period from one day to five days. A trader who enters and medium-term exit trades can be considered as a medium-term trader. The trader hold position for an hour or a few days with the intent to hit specific profit targets. Compared to long term trading and scalping, medium-term trading requires the lowest capital, though there are fewer trade opportunities for this kind of trading.
The medium-term trading involves multiple time frames and use of both technical and fundamental analysis. Aside from those, it also makes use of trend lines, critical support and resistance points, pivot points, Fibonacci retracement, chart pattern and candlesticks formation.
The medium-term trading limits the level of risk like short term trading. Your trade risk is zero when you are out of the market. But it takes a lot of time to analyze technical indicator, charts on different time frames and to indicate critical support and resistance levels.