USD NOK Forex cross pair (American Dollar versus Norwegian Krone) broke all-time highs after months. USD NOK is trying to recover from the worst drop it had in a few decades.
As explained in a similar technical supply and demand analysis for EUR/NOK at EURNOK recovering from the worst drop in a few decades, we discussed the reasons why Norway’s Krone suffered the worst drop in half a century.
Our supply and demand Forex analysis told us that a strong imbalance was in the making and that going long after such a strong rally was not allowed, we had to wait for a pullback and that’s exactly what has happened on several NOK Forex cross pairs including USDNOK.
As short term traders you could have sold all the way down to the strong imbalance pointed out in the analysis. But once the Weekly imbalance takes control, only longs are possible.
As expected, USDNOK dropped to drop all the way down to the origin of the more to a strong weekly imbalance located around 9.38.
As a short term trader trading intraday on Forex, you will be able to go trade short all the way down if forex selling signals start to happen.
Longs would have been possible at the imbalance indicated in the previous supply and demand technical analysis for USDNOK Forex cross pair.
See the updated technical analysis below and compare it with previous USDNOK Forex cross pair forecast.
This is the kind of price action technical analysis you will learn in our fx trading community.
You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis.
Just supply and demand imbalances.
Trading supply and demand imbalances is ideal for beginners and those with a full or half time job. You won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances.
Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.
Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements.
You can use these imbalances to plan your trades in lower timeframes.
Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game.
We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
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