Trend Line Break

Trend Line Break is a reversal chart patterns, where a stock in an up trend, breaks out of a support trend line and a stock in a down trend, breaks out of a resistance trend line. This is a very basic, simple, time tested chart pattern, which with an addition of a trend following indicator, gives an excellent result.
Pattern Formation

First learn to draw Trend Lines. Draw resistance trend lines in a down trend and support trend trend lines in an up trend. When ever a trend line broken out by the moving stock price, we get trading opportunity.

Volume invariably rises at the break out point, which indicates a strong trade.

See how all the trades are profitable. This being an up trend, taking long trades at the break out of resistance trend lines, gives more profitable trades.

Trend line breaks

Trend line breaks are counter trend trades, because they expect the price to continue in its new direction (against the previous trend). For an upward trend line (and an upward trend), a trend line break would be a short trade, where the trader sells at a price near the trend line, and then buys at a price below the trend line. For a downward trend line (and therefore a downward trend), a trend line break would be a long trade, where the trader buys at a price near the trend line, and then sells at a price above the trend line.
Trend line breaks are not usually traded independently, but are combined with other trading information, such as price movement or volume information

How to trade?
Trade minor trend breakout in the direction of an intermediate trend or trade intermediate trend breakout in the direction of a major trend. Use an indicator to go with a trend. Wait for the break out bar to close. Then only sell below the low of the support breakout bar and buy above the high of the resistance breakout bar.