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 4 hour chart above price is trading with an increasing bullish momentum and I expect a bounce at the resistance line 1.1895. If you bought this pair at the supportive line 1.1752 after a bounce, at the resistance line 1.1895 is the ideal place to pick your profits. How
Technical observation GBP penetrated above a zone 1.2781-1.2753 with a big green candle then rose up to a resistance line 1.3290. It then broke above the resistance level but was not contained above it. Price penetrated below the same line then declined up to the zone 1.2781-1.2753 and bounced wi
Technical observation USD is trading with an increasing bearish bias above a supportive level 104.29; however, I expect a loss of this bearish rally followed by a correction to the resistance zone 105.22-105.16 and a bounce within it to sell USD. My advice, remain neutral and wait for a pullback t