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 weekly chart above price retraced to the resistance zone 1.1413-1.1375 but could not break above it, since then it has been trading with an increasing bearish bias and I expect a continuation of this downwards movement to the supportive level 1.0697 followed by either a
Technical observation Last week, the pair on the chart above retraced to the supportive zone 1.3435-1.3354 but it could not reach it, this week price opened bearish and I expect a continuation of this downwards movement to the zone I have mentioned above followed by a rejection within it to pick lo
Technical observation Last week USD did not ascend towards the resistance level 123.23 as I had predicted, instead it declined and broke below the zone 114.81-114.34 with a big red candle and as long as it is sustained below this zone, I expect price to plummet towards the supportive level 104.44.