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 broke above a resistance line 1.1715 with a big green candle then pulled back to it and was contained. EUR is currently trading with an increasing bullish momentum above the supportive line 1.1715 and I expect this upwards momentum to continue to the
Technical observation GBP is trading with an increasing bullish bias within a resistance zone 1.3130-1.3097 and my expectation is either a clear breakout above the zone 1.3130-1.3097 with a big green candle, or a correction to the supportive zone 1.2627-1.2603. In case of a clear breakout above 1
Technical observation USD continues to rally below the resistance zone 106.09-105.92 with an increasing bearish bias. I expect this price movement to continue to the supportive line 102.26 followed by a clear breakout below it for further bearish movements of price. If you sold USD within the zone