Overview
If there ever was an easier; modular system, this one is the one. The basic idea of trendlines comprises of many variables that must be taken in consideration when in use, such as, Trend Angle, Momentum, & Time. I'll let you in on a little secret on trading: its not as "random" as most would want you to belive. The market tends to trend either way and patterns occur more often than you think. I would invite you to study up on Market Movements and Patterns, Candlestick Reveral Patterns, and Trendline Uses. The Trendline Break system contains three individual variation; all based on personal preferences. One will be discussed in this thread. The other two will be discussed in a later date.
One of the major problems with trading trendlines is that most traders do not know how to properly set and use them. Here is some readings on how to properly apply trendlines.
Tools of the Trade
1) Trendlines
2) Candlestick Reversals Patterns
3) Any Timeframe
Trading Strategy. As Simple as One, Two & Three
1) Find the upwards trend,
2) Apply the trendline,
3) Price Action breaks downwards through the trendline
Our first step is to locate a strong upwards trend. Apply a trendline to help visually spot out that trend and to use as an "barrier" for Price Action. Now we wait for Price Action to breakthrough the trendline and head downwards, in which a SELL order may now be entered. The chart below is an example of a trade setup we are looking for.