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 |
28 June | Technical observation This week, EUR has been trading on an increasing bearish bias below the zone 1.1543-1.1464 and I expect it to close that way. Next week however, I expect a rise to the resistance zone followed by a rejection within it for bearish price movements towards the key line 1.0877. M | Technical observation On the weekly chart above GBP is trading above a supportive level 1.2567 on an increasing bearish momentum and my expectation is a clear penetration below it followed by a retracement to it for a surge to the lower side. Remain neutral and wait for a breakout below 1.2567 and | Technical observation On the 4-hour chart above, price retraced to a resistance line 107.78 and broke above it with a big green candle, however, it could not be contained above it and ended up breaking below the line. Currently USD is trading on an increasing bearish momentum below the just broken |
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