Upward Energies Trend Lines & Channels

An upwards energies trendline is plotted below the trend pattern by connecting at least two lows. This upward energies trend line will draw a line that show the general direction of the market.

The diagram below shows how energies price moves when it is moving in a bullish market. The price will move upward forming support zones.

Since the market moves in a zigzag manner energies traders normally draw a energies trend line which shows the general upwards direction of the market.

A up trend occurs when the fore price makes consecutive higher highs and higher lows. Each price high is higher than the previous high - higher high, & each low is higher than the previous low - higher low.

Energies Trading Up energies trading trendlines gain more validity each time price touches this up-wards trendline but does not penetrate it. A up trend remains in place until this series of higher highs and higher lows is broken.

A downside penetration of an upward energies trendline is a technical sell trading signal, & usually the first indication that an up-ward energies trend may soon end.

Drawing an Upwards Energies Trend Line

When the market moves up it forms higher highs and higher lows forming a bullish market movement - Upward Energies Trend. An upward energies trendline can then be drawn by connecting these higher lows.

To draw this up-wards trendline setup we use supports. To draw the upwards trendline correctly two support zones are needed. When price touches the upwards trend line we buy and place stop loss orders just a few pips below the upwards trend line. The diagram below shows an example of an upward energies trend line.

The up-wards trendline setup will show the general direction of the market as bullish therefore traders will only open buy long energies trades as long as price is within this upward trend bullish market setup and within the support levels. These support levels are the levels where if the market retraces then these points will provide strong supports for the price. This is why many energies buyers will wait until energies price retraces downwards and hits these retracements levels market the upwards trendline to open buy trades. trades opened at this support levels have a high Risk to Reward Ratio with minimum draw down.

In the above upward energies trend line energies setup the trader would have opened buy/long energies trades from the signals generated at the support1, support2, support3 and these trades would have made a lot of trading profits with minimum amount of drawdown/retracement.

Upward Energies Trading Channel

An upwards energies channel is plotted by drawing a line that is parallel to the upwards trendline & then adjusted to touch the tops boundary of the price movement. This then forms an up-ward energies channel and as long as a price stays between these two channels the bullish market movement will continue moving up.

Trading The Energies Trading Channel

This upwards energies channel is used by traders to show levels where it is best to take profits. Traders will take some profit once the price touches the upper channel & wait for another retracement before opening a long buy trade again.

MT4 Tools For Drawing Energies Trend Lines & Channels

The Energies Trading MT4 Trendline Indicator drawing tools to draw these trend lines & energies channels setups on the MT4 are located on the MT4 drawing tool bar within the MT4 platform, To get this MT4 tool bar if it is not activated on your energies platform, Click in "View" Next to "File" menu at tops left corner of the MT4 trading platform & click View, Then Click on Tool Bars, Then Check the "Lines Toolbar" by clicking on it.

Below is the screenshot Image of the MT4 drawing toolbar. To draw a energies trend line on a energies chart just click on this MT4 trendline drawing tool and select the point where you want to draw the trend line.

This is one of the learn technical analysis lesson among the many learn energies tutorials on this website located on the side navigation menu, where you will learn how to draw energies trend lines & analyze these trend lines setups.