Introduction The major key is a breakout strategy that signals a buy or sell trade based on trends. For every current up trend, you would analyse (with the use of a trend line) for a sell signal and for every down trend, you would analyse for a buy signal. This is because we trade trends. So, you would wait for a trend to change direction, then ride that trade either up or down as your way of gaining pips (that paper). If you are wondering how we do this, well, you see the graph moves up and down every split second (that is the price change, price action). So, depending on what is happening in the market, the price will go up and for a long period. As a result, we have the graph going up and down in trends, forming patterns like the letters “M” and “W”, the head & shoulders, and so on. The trick of this strategy is to buy low and sell high. But how do you know when to sell/buy? 
 So, to analyse a down trend for the buy signal, you start drawing your trend line from the top of your down trend all the way to the bottom. The correct way to do this is to keep your trend line where price action takes place. That means that you will keep your line on the edges of the candle sticks as much as possible. The trend line is not allowed to cut through candle sticks unless the trend breaks the trend line. For a valid trend line, the trend line must touch two or more candle sticks' price action (the edges of the candle stick where price opens and closes) and/or the candle stick tails. If the trend line does not touch two or more candle sticks, then the trend line is considered invalid. With an invalid trend, there isn't a valid breakout. That means there is NO signal. After the breakout, there must be a confirmation candle stick. A confirmation candle stick is a candle stick of similar direction to the breakout candle stick. This particular candle stick confirms the change in direction of the trend. Now that is your buy/sell signal. Basically, a candle stick from the trend (either down or up) suddenly breaks (crosses) the trend line. That is a sign that the direction of the trend might change, so you wait for the next candle stick to confirm the change in direction. If the confirmation candle stick is in the same direction and colour as the breakout candle stick, you are ready to take a trade. However, if the confirmation candle stick is not in the same direction as the breakout candle stick, that means that the breakout was a false breakout. So, you would then move your trend line away from the body of the candle stick and place it on the edge of the candle stick or tail. You would then wait for the next breakout. Rules: -The trend line touches the graph two or more times. -The confirmation candle stick must be of the same direction as the breakout candle stick. -The trend line is not allowed to cross candle stick bodies unless there is a valid breakout. -Only place your trade after the confirmation candle stick has confirmed and CLOSED.