GBP/NOK LONG: My Technical AnalysisDear Readers, Today I want to show you my long investment on GBP/NOK.
As a passionate analyst of the Forex market, today I want to share with you a strategy that I am following on the British Pound/Norwegian Krone (GBP/NOK).
The current setup is particularly interesting, as it presents consistent bullish signals on multiple timeframes, supported by technical indicators that I have developed and customized for in-depth analysis.
My Technical Analysis
To build this long strategy, I used the custom Wave Trend (developed by me) and the Alligator indicator. Both tools gave me clear signals of a bullish reversal.
Here is a summary of the signals identified:
1-Hour Chart (1H): On the hourly timeframe, we have just seen a break of the previous resistance, a strong signal that indicates a possible continuation to the upside.
4-Hour Chart (4H): On the 4-hour timeframe, the price is in an oversold condition and is bouncing off the long-term average of the Alligator. This suggests a recovery from a phase of excessive market weakness.
Daily Chart (1D): The long-term context remains bullish. This prolonged phase of positive trend offers additional safety for a long position.
Key Levels of the Strategy
To make this trade safe and effective, I have set key stop loss and take profit values, as shown in the chart.
Stop Loss: Placed at 13.85689, below the recent lows. This level provides protection in the event of a sharp reversal.
Take Profit: Set at 14.47413, an ambitious but realistic target, which aims to capitalize on the bullish trend.
Indicators Confirmation
The Wave Trend, positioned at the bottom of the chart, has signaled a bullish divergence and the passage from the oversold zone. The Alligator, on the other hand, shows a possible opening of the moving averages (indicative of a nascent trend), with the price that has detached from the long-term average, suggesting a potential bounce upwards.
Conclusions
This setup is a great example of how to combine technical signals and market context to build a winning trading strategy. The consistency between the signals on the 1H, 4H and 1D timeframes gives me further confidence in my long investment on GBP/NOK.
I will keep you updated on the progress of this operation and on the next trading opportunities. As always, remember that good risk management is essential to achieve success in the financial markets.
See you soon,
Andrea Russo.
