Trade Gold Trading

Meta Trader 4 Tools for Drawing Trend Lines & Channels

To draw an upward trendline, just connect at least two lows beneath the trend. This line gives you a good sense of the overall market direction.

The picture here shows how the xauusd price changes when the market is going up. The price will rise, creating areas of support.

Because the market usually moves kind of like a zigzag, traders usually draw a line to show the overall upward direction that the market is heading.

Upwards Trend-Line MT4 Trend-Line Indicator - Place a Trend-line on Trading Chart

An uptrend happens when the market forms higher highs and higher lows in a row. Each new high tops the last one. Each new low beats the previous low.

Up trend lines gain validity each time gold prices touch this upward trend line without breaking through it. The upward trend remains intact until there is a break in the sequence of higher highs and higher lows.

If the price drops below a rising trend-line, it's a signal to sell, and it usually means that an upward trend might be ending soon.

Upward Trendline MT4 Trend Line Indicator

When markets move upward, they form higher highs and higher lows, establishing an upward trend. Such a movement allows the creation of an upward trendline by connecting these higher lows.

To create this rising trendline pattern, we use supports. To correctly draw the rising trendline, we need two support areas. When the price of gold touches the rising trendline, we buy and place stop losses just a few pips below the rising trendline. The diagram below shows an example of a rising trendline.

Upwards Trend-Line and Upwards Channel - How Do I Draw Upward Trend-Line in MT4 Platform?

The upward trendline setup will show the general market direction of the price as bullish thence traders only will open/execute buy long gold trade positions as long as trading price is within this upwards trend bullish market setup and within the support areas. These support areas are the levels where if the market retraces then these areas will provide strong supports for the market price. This is why a lot of buyers will wait until xauusd price retraces downward and hits these retracements levels market the upward trendline to open/execute buy trades. Trades opened at this support levels have a high Risk : Reward Ratio with minimum drawdown.

In the above upwards trendline trading setup the trader would have opened buy/long xauusd trades from the trading signals derived & generated at the support1, support2, support3 & these trades would have made a lot of profits with minimum amount of draw down/retracement.

Upwards Channel MT4 Channel Technical Indicator

An upwards channel is made by drawing a line that goes the same way as the upward trendline, and then adjusting it to touch the top edge of price movement. This creates an upwards channel, and as long as the price stays between these channels, the rising market movement will keep going up.

How to Use Trend line Indicator in Trading Platform Explained Trading Charts

How to Trade the Upward Channel

Traders use this upward channel to set profit targets. They take gains when price hits the top line. Then they wait for a pullback to buy again.

MetaTrader 4 Tools for Drawing Trend Lines & Channels

The MT4 Trend-Line Indicator drawing tools to draw these trendlines & channels setups on the MetaTrader 4 are located on the MT4 drawing toolbar within the MetaTrader 4 software, To access this MetaTrader 4 toolbar if it is not activated on your platform, Press in "View" Next to the "File" on the top left corner of MT4 software & click View, Then Press on ToolBars, Then Tick the "Lines Tool-Bar" by pressing on it.

The screenshot illustrating the drawing toolbar within MT4 is provided beneath. To superimpose a trend line onto a chart, activate this MetaTrader 4 trend line plotting tool, then select and define the precise starting point from which you, the trader, wish to draw the desired trend line.

MetaTrader 4 Tools for Drawing Trend-lines and Price Channels

This lesson teaches trend line drawing and analysis. It's part of many trading tutorials here. Find them in the side menu. Use them to spot trend setups.

More How-To Information and Lessons:

Gold Broker