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 Euro is currently below a significant restance zone 1.19849-1.19864. While the price remains below this zone, we are waiting for a rebound from the upper trendline to pick a possible long term sell position towards the lower trendline. And in case the price break above 1.1984
Technical Observation GBPUSD is currently approaching a resistance zone 1.37990-1.37951. While the price does not clearly breakout and close above this zone, we are waiting for a possible rebound rebound from this zone to pick a possible sell position. And should the price breakout above 1.37998,
Technical Observation The US Dollar continues to rally below 108.826-108.802. While we continue to see sustenance below this zone,we are looking for long term sell positions towards the lower trendline. On its way to the lower side, the key levels to look for include 108.515, and 107.200. On the o