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, EUR broke above the level 1.0600 then pulled back to it twice but both times it could not break below the level and as long as it is sustained above the same line, I expect possible bullish momentum of price. If you picked bullish positions at the supporti
Technical observation GBP rose to a resistance level 1.2444 but could not break above it, instead it bounced at the same line and since then it has been trading with an increasing bearish bias. This downwards movement is a correction to the supportive zone 1.1968-1.1941 and I expect a possible rej
Technical observation USD pulled back to the zone 138.08-137.72 but did not break above it, instead, it bounced at it and it is currently trading with an increasing bearish bias. As long as price is sustained below the zone mentioned above, I expect a continuation of this downwards movement and in