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 is trading with an increasing bullish bias above the supportive zone 1.0832-1.0740 and this week I expect it to close bullish. Despite this upwards movement, I also anticipate a correction to the zone I have mentioned above followed by a rejec
Technical observation Just like EUR, GBP is also trading with an increasing bullish bias above a supportive zone 1.2278-1.2186 and I expect a loss of this upwards movement followed by a correction to the zone indicated above. My advice, remain flat and wait for a pullback to the zone 1.2278-1.2186
Technical observation USD declined below the zone it established at 134.17-133.9 and it is currently trading with an increasing bullish bias below the same zone, this upwards movement is a correction to the zone I have mentioned above and I expect a possible bounce within it followed by a rally to