This is a trend following analysis using a breakout entry formation that generally has the greatest results. This analysis is good for 4H trading, but can also be used on almost all time frames and on all pairs. Basically, this analysis is based on breakout and certain forms of reversals. The analysis seeks to highlight potential breakout setups that can result in higher reward. To ensure consistent successful trades, the trader should exercise some degree of patience and wait for the perfect set up to execute trades. There’re are several types of breakouts, I only focus on two types of breakouts, trend line breakout and double top/triple top/ bottom breakout. Even with the two, I only trade double top/ triple bottom breakout most of the times and trend line breakout at some other times. Double top/Triple top/ bottom breakout is more dependable and reliable than the other. Note, trend line breakout includes also breaks that occur out of various shapes such as wedges, channels, triangles, and all the other shapes part from rectangles. Below are the simple sketches of some of the breakout setups I’ll be focusing on.
|29 May - 02
Wait for a clear breakout below 5692.3 to short ASX towards 5374.3 Technical Observation: Recently, the Australian Index go rejected from the immediate trend line acting as the resistance and is currently rallying downwards. I expect a breakout below the support line 5692.3, and then
Technical Observation: On the weekly chart above, the previous week's candle closed slightly below it's opening price and is a perfect indecision candle above a key weekly short term support 1.1146. This week, I expect minor bearish retracements towards this support to rebuy EUR towards 1.1448 w
Technical Observation: Recently, the bears pitched lower but could not penetrate the support line 1.2768. Since this line was my previous buy place, I expect a clear rejection from this line to re-buy GBP towards my initial target at 1.3489. Minor consolidations above this line will act as possi
Technical Observation: Recently USD entered into a possible bearish flag but broke out below it earlier the previous trading day. Today, I expect minor bullish retracements towards the bottom of this flag, that is 111.51, to resell USD towards 109.73. On the 4 Hour chart above, sell positions s
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