Upward Trend Lines and Channels - MT4 Tools for Drawing Trendlines and Channels

An upward trendline is drawn below the trend pattern by connecting at least 2 lows. This upward trend line will draw a line that show the general direction of the market.

The example below shows how 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 traders normally draw a trendline which displays the general up-ward direction of the market.

A uptrend occurs when the fore price makes consecutive higher highs and higher lows. Each price high is going to be higher than the previous high - higher high , & each low is higher than the previous low - higher low.

Forex Uptrendlines gain more validity each time price touches this upwards trend-line but does not penetrate it. A uptrend remains in place until this series of higher highs and higher lows is broken.

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

Drawing an Upwards Trend Line - Upward Trendline MT4 Trendline Indicator

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

To draw this upward trendline setup we use supports. To draw the upwards trend-line correctly 2 support zones are needed. When price touches the upward trend line we buy and place stop loss orders just a few pips below the upwards trend line. The example below shows an example of an upward trend line.

The up-wards trend-line setup will show the general direction of the market as bullish therefore traders will only open buy long trades as long as price is within this upward trend bullish market setup and within the support areas. 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 buyers will wait until price retraces downward & hits these retracements levels market the upwards trend-line to open buy trades. Forex trades opened at this support levels have a high Risk to Reward Ratio with minimum draw down.

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

Upward Channel - Upward Channel MT4 Channel Indicator

An upward channel is plotted by plotting a line that is parallel to the upward trend line & then adjusted to touch the top boundary of the price movement. This then forms an up-wards forex channel and as long as the price stays between these 2 market trend channels the bullish market movement will continue to move upward.

Trading The Channel - How to Trade Up-ward Channel

This upward 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 Trend Lines and Channels

The MT4 Trendline Indicator drawing tools to draw these trend lines and channels setups on the MT4 are located on the MT4 drawing tool bar within the MT4 platform, To access this MT4 tool bar if it is not activated on your platform, Click in 'View' Next to 'File' on the top left corner of MT4 platform & click View, Then Click on Tool Bars, Then Check the 'Lines Tool Bar' by clicking on it.

Shown Below is the screenshot Image of the MT4 drawing tool-bar. To draw a trendline on a chart click this Meta Trader 4 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 tutorials on this website located on the side navigation menu, where you will learn how to draw trend lines and analyze these trend lines setups.