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 broke below the zone 1.1382-1.1374 with a big red candle then rose steadily for some time and for the past two consecutive hours the value of this pair has been trading with an increasing bearish, bias however, I expect a loss of this downwards movement followed by a ret
Technical observation GBP retraced to the supportive zone it established at 1.3593-1.3563 but could not break below it and as long as it is sustained above this zone I expect the value of this pair to ascend towards the resistance level 1.3966. I would advised that you remain flat and wait for a
Technical observation On the daily chart above, price is trading with an increasing bearish bias below the resistance zone 115.62-115.42 and the supportive level 112.73 with an increasing bullish bias, however, my expectation is a loss of this bullish movement followed by a correction to the level