The Steinitz Fractal Breakout Indicator (referred to as SFBI) was developed by Don Steinitz through rigorous research over the past 5 years. The SFBI in conjunction with the Steinitz Trend Indicator (referred to as STI) determines the trend strength.

The greater the up trend strength the larger the decimal value returned. Likewise, the greater the downtrend strength, the smaller the decimal value. A trend comes into existence when the value of the STI is outside the range of -.25 to .25. Thus a value of .20 for example does not indicate any significant trend, however a value of .26 indicates an uptrend and the value of -.26 indicates a downtrend. Anything between -.25 and .25 is considered to have no importance in terms of trend strength and yellow bars are painted by the STI indicator. The value of .25 or greater will cause green bars to be formed and values below -.25 will cause red bars to be formed.

This method seeks high probability winning opportunities based upon retracements and trends only. It's well known that to make money when buying in the market you must buy low and sell high and vice a versa when trading short. When combining "Fractals", break-outs and trend strength we have a complete trading system.