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 chart above, price is trading with an increasing bearish bias between a resistance level 1.1991 and a supportive level 1.1835, however, I expect bullish movements to the resistance level I have mentioned above followed by a rejection at it to pick short positions. My a
Technical observation GBP broke below a supportive zone 1.4012-1.4003 with a big red candle, it then pulled back to it and it was sustained below the zone. Right now price is trading with an increasing bearish bias and as long as it is contained below the zone i have mentioned above, I expect a r
Technical observation On the daily chart above, price rose up to the resistance level 110.96 but could not break above it, it bounced at the line and is currently trading with an increasing bearish bias and this bearish movement is a correction to the supportive zone 108.15-107.94. I expect this