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 |
06 December | Technical Observation EURUSD is in an active up trend. Earlier this year, EURUSD established a swing around 1.1115. While the price is not able to break above this swing high, we choose to remain flat, but should the price break above 1.1115, then we will consider a long term buy order with an ult | Technical observation GBPUSD is in an active up trend. While the TDI lines are above the level 68, this is a possible overbought scenario, we;re waiting for a possible sell sign. While the price is held above 1.3146, I expect further momentum to the upperside towards 1.32. But in case the price br | Technical Observation According to the TDI indicator attached on the lower window, the yellow trendline is slowly sliding below the neutrality level 50.0. If the price continues to the lowerside and the indicator lines breaks below 32.0, then this will be an oversold level and could give a good bu |
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