MT4 Tools for Drawing Gold Trend Lines and XAUUSD Channels

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

The diagram below shows how xauusd price moves when it is moving in a bullish market. The xauusd price will move upwards forming support levels.

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

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

Gold Up trend lines gain more validity each time xauusd price touches this upward gold trend line but does not penetrate it. A up gold trend remains in place until this series of higher highs and higher lows is broken.

A downside penetration of an upward gold trend line is a technical sell gold trading signal, and usually the first indication that an upward gold trend may soon end.

Upward Gold Trend Line MT4 Gold Trend Line Indicator

When the xauusd market moves up it forms higher highs and higher lows forming a bullish market movement - Upward Gold Trend. An upward gold trend line can then be drawn by connecting these higher lows.

To draw this upward gold trend line setup we use supports. To draw the upward gold trend line correctly two support levels are needed. When xauusd price touches the upward gold trend line we buy and place stop loss gold orders just a few pips below the upward gold trend line. The diagram below shows an example of an upward gold trend line.

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

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

Upward XAUUSD Channel MT4 Channel Indicator

An upward gold channel is drawn by drawing a line that is parallel to the upward gold trend line and then adjusted to touch the top boundary of the xauusd price movement. This then forms an upward gold channel and as long as the xauusd price stays between these two channels the bullish market movement will continue moving up.

How to Trade Upward XAUUSD Channel

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

MT4 Tools for Drawing XAUUSD Trend Lines and Channels

The MT4 Gold Trend Line Indicator drawing tools to draw these gold trend lines and gold channels setups on the MetaTrader 4 are located on the MT4 drawing tool bar within the MT4 platform, To access this MetaTrader 4 tool bar if it is not activated on your gold trading platform, Click in "View" Next to "File" at the top left corner of the MetaTrader 4 platform and click View, Then Click on Tool bars, Then Check the "Lines Toolbar" by clicking on it.

Below is the screenshot Image of the MetaTrader 4 drawing tool bar. To draw a gold trend line on a gold chart just click on this MetaTrader 4 gold trend line drawing tool and select the point where you want to draw the gold trend line.

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