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 above the trend line marked on the daily chart above on an increasing bullish bias; price declined to the trend line but could not penetrate below it and was rejected. Right now, I expect a retracement to the resistance zone 1.1178-1.1175 followed by a bounce w
Technical observation Yesterday GBP rose as I had predicted and I still expect more of this upwards movement today. If you bought this pair within the supportive zone 1.2984-1.2848, remain long with your take profit at 1.3516 and stop loss at 1.2818. However, in case there’s a clear penetrati
Technical observation A week ago, USD penetrated above a resistance zone it had established around 109.75-109.62 with a big green candle, price then retraced to the just broken zone but could not penetrate below it and was rejected. I expect bullish movements of USD towards the key level 111.76 fol