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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.

2017 EURUSD GBPUSD USDJPY
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Technical Observation: Recently. EUR brokeout below the support line 1.1131, retraced back to it twice before continuing long. Currently EUR is showing signs of retracing back for the third time to this line. Unless there's a clear bullish breach above this line, I expect a rejection from this

Technical Observation: Recently, GBP entered into a range only rallying within the rising wedge. On the 4 Hour chart above, buy positions seems lucrative within the rising channel, however, any clear bearish breach below the lower trend line will signify a breakout and may push the price lower.

Technical Observation: After plunging down on 17th of this month, USD is currently pulling back. I expect a rejection from 111.74 to short USD towards the support line 110.69. In case of a breakout above this resistance line, its wise to wait for retracements to the just broken line to buy USD

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