We have been pretty bullish on the USDNOK throughout the year and Dollar has more strength to come to support this pair. Recently, we posted a trade idea on USDNOK that the market was correcting in a 3 or 7 swing structure and we took advantage of this. This has been a pretty successful trade so far. The best part is that we are completely risk free as I type this.
Lets have a look at a before shot
21st June 2022 -USDNOK 1 Hour Elliott Wave Analysis
We can see that wave 2 was correcting as an Elliott wave Zigzag structure and our entry is based on wave ((c)) = ((a)) from the extreme of wave ((b)). Therefore, our entry was at 9.87 and the invalidation for the trade was at 1.618% extension at 9.75.
The above screenshot shows this trade was already triggered as it reached into the blue box zone. However, we still had projected wave (iv) and (v) to complete this 5 wave sequence into wave ((c)) of 2.
22nd June 2022 – USDNOK 1 Hour Elliott Wave Analysis
So we can see here, wave (iv) and (v) did take place and it was very much deep towards 1.618% – but the trade was not stopped out. The trade has been unfolding towards a 5 wave sequence into wave ((i)) of 3.
We have now taken 50% profits off the table. We moved stop loss the same distance between the entry and 50% from wave ((b)) below the entry point. Therefore, the trade is 100% risk free.
Next step
We are waiting for price to complete a 5 wave sequence to the upside and reach 100% extension of wave 3 against 1. But prior to that we want to see price breaking the extreme of wave 1.
Source: https://elliottwave-forecast.com/forex/usdnok-dollar-remaining-strong/