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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 and commodities. The analysis seeks to highlight potential breakout setups that can result in higher reward.

Technical Analysis Based on Breakout

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
05
Februari

Technical observation On the 4-hour chart above, price retraced to a resistance zone 1.2051-1.2042 but could not break above it; it bounced within the zone and is currently trading with an increasing bearish bias. I expect this downwards movement to continue to the supportive line 1.1927 followed

Technical observation On the weekly chart above, price is trading with an increasing bearish momentum above a supportive zone 1.3461-1.3409. I expect this bearish movement to continue to the zone mentioned above, followed by a rejection within it to pick long position. My advice, remain flat tempo

Technical observation USD rose up to the resistance line 105.59 but could not break above it, it bounce at the same line and right now it is trading with an increasing bearish bias. This bearish movement is a retracement to the level 104.69 and I expect it to continue to it followed by a rejection

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