how to identify a breakout confirmation

4 Mar 2019

hey guys,

I will try to explain to you how we can use a combination of multiple timeframes and patterns
to confirm a breakout.

on the euro dollar on a 4 h chart we have a completion and bearish violation of a bearish flag pattern.
We have a series of rejection candles around 1.142 level and clear rsi divergence.

on a lower time frame we see a head and shoulders pattern standing on a very important level of support.
just recently, we saw a bearish breakout of a neckline.


from this stand point, we can consider a bearish breakout of a flag pattern to be confirmed.
now I anticipate a retest of the market low,
let's see how the market will react on 1.126 level.

Good luck!

4 Mar 2019

Not

market goes lower

5 Mar 2019

Not

market is going down