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.
2021 | EURUSD | GBPUSD | USDJPY |
22 tháng Giêng | Technical observation On the chart above, price retraced to the resistance zone 1.2171-1.2160 as I had anticipated but did not break above it, it is currently trading within the same zone with an increasing bearish momentum and I expect this downwards movement to continue to the supportive level 1 | Technical observation GBP retraced to the supportive zone 1.3623-1.3618 but could not break below it; it bounced within the zone then rose up to the resistance zone 1.3706-1.3700 with a big green candle. This pair is currently trading with an increasing bearish bias within the zone 1.3706-1.3700 a | Technical observation USD is trading below a resistance zone 103.63-103.59 with an increasing bullish bias. I expect a loss of this bullish movement within the same zone for a rally to the lower side to the key level 102.99. My advice, remain flat temporarily and sell a bounce within the zone menti |
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