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, price broken above a key line 1.2009 as I had predicted with a big green candle, though this pair is still trading with an increasing bullish momentum, I expect retracement to the just broken line followed by a bounce at it to buy EUR with my take p
Technical observation GBP penetrated above a key line 1.3279 then retraced to it and it was contained above the line indicating a possible momentum to the upper side towards the resistance level 1.3604. If you bought this pair at the support 1.3279 after a bounce, remain long with your take profi
Technical observation Following its rejection within the supportive zone 104.15-104.11, USD has been trading with an increasing bullish bias and I expect this upwards movement to continue to the resistance zone 104.96-104.91 followed by a clear breakout above it with a big green candle. If you bo