As cryptocurrencies, such as Bitcoin, Ripple and Etherium are trend instruments, I offer this trend following analysis using a breakout entry formation that generally has the greatest results.
Timeframes: this crypto analysis is good for 4H trading, but can also be used on almost all time frames and on all pairs.
How it works: 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 buy or sell cryptocurrency. There’re 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 on the cryptocurrency chart 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.
Technical observation On the 4Hour chart above, BTC could not be contained above the supportive zone $6552.37-$6512.61,on the previous hour, price broke below the zone with a big red candle and is still declining, I expect either a correction to the zone followed by a rejection within it for possib
Technical observation Just like BTC, this crypto too could not be contained above a supportive zone 230.58-227.84 and so it broke below it with a big red candle and is still rallying below it. I expect a correction to the zone followed by a rejection of price within it for possible downwards moveme
Technical observation On the daily chart above, Ripple broke above a resistance zone 0.52039-0.50209 with a big green candle but price could not be contained above it and so it broke below the zone and is currently rallying down. I expect a correction of price to the just broken zone followed by a