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 slightly above the supportive zone 1.0477-1.0462 and I expect it to continue to the same zone then bounce within it. My advice, remain neutral and wait for a correction and a bounce within the zone I have ment
Technical observation On the 4 hour chart above, GBP has been trading with an increasing bearish bias for some time now and today I expect a continuation of this downwards momentum. The anticipated surge to the lower side is a correction to the supportive zone 1.1689-1.1644 and I expect a rejection
Technical observation USD declined to the supportive level 129.83 but could not break below it, instead it bounced at the same level and since then it has been trading with an increasing bullish bias. My expectation is a continuation of this upwards movement to the resistance zone 138.00-137.65 fo