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 hourly chart above price is trading with an increasing bearish bias between a supportive level 1.1851 and a resistance zone 1.1995-1.1987, despite this bearish movement, I expect a correction to the zone I have mentioned above followed by a rejection at it to pick shor
Technical observation GBP rose steadily to the resistance level 1.3934 as I had predicted and it was sustained below it; as long as price is below the line, I expect a rally to the lower side. If you picked short positions at the resistance level 1.3934 after a bounce remain in the trade with your
Technical observation USD penetrated above a resistance level 110.32 with a big green candle then rose for some time, right now price is trading with an increasing bearish bias above the level I have mentioned above, this bearish movement is a correction to the line 110.32 and I expect a rejection