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.
Technical observation On the chart above, price is trading with an increasing bearish bias, my expectation is a rally to the supportive zone 1.1513-1.1450 followed by a bounce within it to pick long positions. My advice, remain Flat and wait for a retracement to the zone mentioned above and a boun
Technical observation Since its rejection within the zone 1.3461-1.3409, the pair on the chart above has been trading with an increasing bullish bias. My expectation is a rally to the upper side to the resistance line 1.4249 followed by a possible breakout above it for a further rise in price towa
Technical observation Previously on the chart above, USD declined below the zone 1.3461-1.3409 with a big red candle but was not contained. It rose above the same zone then retraced to it and wait contained within it. Price is currently trading with an increasing bullish bias within the supportive