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 daily chart above, EUR rose up to a resistance zone 1.1150-1.1131 but could not penetrate above I and price was contained below it before trading on an increasing bearish momentum. Within the above-mentioned zone is the ideal place to sell this pair after a rejection w
Technical observation GBP is retracing steadily towards a zone1.2059-1.2027 it penetrated below with an increasing bearish momentum. My expectation is a loss of this bearish price rally within the zone for possible upwards movements. My advice, wait for a correction to the zone 1.2059-1.2027 and a
Technical observation On the 4 hour chart above USD is trading below a zone 108.54-108.34 it recently broke below with an increasing bullish bias. I expect a loss of this upward movement within the above-mentioned zone followed by a possible bearish price rally towards the key level 105.40. My adv