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 continues to decline steadily towards the supportive level 1.0776 and I expect this bearish rally to continue to the support followed by a clear penetration below it with a big red candle. If you sold this pair at the line 1.0985 after a bounce, remain short with your ta
Technical observation GBP declined to the supportive zone 1.2209-1.2173 and could not penetrate below it. Right now price is rallying with an increasing bullish momentum and I expect this upwards rally to continue to the resistance zone 1.2770-1.2746. Within the supportive zone 1.2209-1.2173 is the
Technical observation On the daily chart above, price is trading below the resistance zone 107.99-107.79 with an increasing bullish momentum. My expectation is either a loss of this bullish movement within the above-mentioned zone for possible bearish price rally towards the supportive level 104.9