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 EUR is trading with an increasing bearish bias towards a supportive level it established at 1.1927. It is currently trading with an increasing bearish bias above the line and I expect a decline to it followed by either a clear breakout below it with a big red candle, or a r
Technical observation On the hourly chart above, price is trading with an increasing bearish bias above a supportive line 1.3865. I expect either a loss of this bearish rally at the line for another retracement to the resistance zone 1.3998-1.3988, or, a clear penetration below it with a big red
Technical observation USD broke above the level 106.94 with a big green candle and is still rising steadily towards the resistance line 109.58. I expect a correction to the just broken line followed by a bounce at it to pick long positions. My advice, remain flat and wait for a correction to the