1/14/2020 USDNOKImpulsive moves are what we are looking for. Right? I mean those are the moves that have the biggest bang for the trading risk buck! However looking around the charts sometimes you just run into a move that has already happened. Sad, but it’s true all to often.
Opportunity could just be hiding in plain sight though.
This is when I look for a EW ( Elliott Wave ) 5 Wave pattern. I’m no EW wave trader, but learned to spot those 5 wave patterns. First EW 5 waves are moves that happen in impulsive moves and more importantly, they’re mostly an ending move pattern followed by a counter move. A very reliable pattern with a very high percentage of these kind of out comes. Second the 4 wave is usually drawn out over a longer time and the move to the ending 5 wave is more sudden. This gives time to get in on the action even though most of the impulsive move happened when you were looking right instead of left. Spotting these on the daily or 4 hour charts is what I trade if they’re seen.
USDNOK is currently in what I think is a EW 4th wave ( see the attached chart)!and about to go down more into the 5Th. In addition to the daily chart, taking a look into the 4H we can see a rectangle consolidating price action just under the 200 day daily moving average. Should this break down lower price according to EW pattern it should make a new low. I’m looking for 8.75-8.70
From it current price of 8.87-8.88 a very nice move indeed if and when it happens.
I’ve placed no orders out to see if they get filled over my night.
Remember yo use personal appropriate risk for you and your size of trading account. Because you know, Forex Trading is the hardest easy money you’ll try to make. All the best in your trading.
