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.
2019 | EURUSD | GBPUSD | USDJPY |
13 December | Technical Observation Earlier today, EURUSD gaped significantly to the upper side and is still in an active up trend. We're waiting for a clear sign that the resistance level 1.1195 is broken so that we buy this pair at the lowest possible ratracement, In the meantime, conservative traders should | Technical Observation GBPUSD established a swing high around 1.3500. This is a significant level and while the price is not able to clearly breakout above it, we're expecting a possible 50.0% fib reteracment. Other than this fib, the other levels the price may pullback to, before we see a continua | Technical Observation Yesterday, USDJPY moved significantly to the upper side and is still bullish both on the daily and on the weekly charts. Following the bounce from the weekly support 107.95, we choose to remain long, we expecting price to proceed even higher towards the upper trendline but sh |
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