I think you must be joking (or trying to make a fool of me) because it has been described one million times:
So, if you're really interested & don't know already you have to start reading.
1st step: choose a higher TF as reference: i. e. H1
a) you have clearly defined limits of price (needn't be horizontal, could also be - like Gold just now - slightly up or down)
b) you wait for the price to clearly break out of the range (that price in our example has lower and lower highs before it breaks to the downside tells you in advance where the bias may be).
c) mostly (not always) the limit of the range will be retested by price (what Walter Peters in "Naked Forex" calls the "last kiss")
this will establish your Directional Bias

2nd step: you move to your trading TF and wait for clear signs that the BO isn't a fake-out (i.e. retest of limit; then price moves in the direction of the directional bias established; in this case: down
You enter your postion: sell
Of course your indicators (i. e. EMAs must confirm the directional bias)

So first you have a range (on higher or reference TF), then you have a breakout, then you normally have a retest, then you enter a trending movement on your trading TF.
During the trending move you must have (in this case) lower lows and lower highs. As long as these are established by price you are in a downtrend, once the distance between them becomes smaller the downtrend weakens, once it disappears the move may be over (or it at least pauses - i. e. is in a range).
As you can see Xard - with his borders - is basically emulating this anyway - to make it easier to see ranges and breakouts (and following trend moves: when you have something like steps going either up or down on the border-lines)