Trade Gold Trading

Meta Trader 4 Tools for Drawing Trend Lines & Channels

An upwards trend-line is drawn below the trend setup by connecting/joining at-least 2 lows. This upwards trendline will draw a line which show the overall market direction of the price.

The diagram below shows how xauusd price moves when it's moving in a bullish market. The price will move upward forming support regions.

Since the market moves in a zigzag kind of manner traders usually draw a trend-line which portrays the general upward direction of the market.

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

A up trend occurs when the market will continue to make consecutive higher highs & higher lows. Each price high is higher than the previous high - higher high, and each low is higher than the previous low - higher low.

Up trend-lines gain more validity every time gold price touches this upwards trend-line but does not penetrate it. A up trend remains intact until this sequence of higher highs & higher lows is broken.

A down-side penetration of an upwards trend-line is a trading sell signal, and is generally the first indication which an upwards trend might soon end.

Upward Trendline MT4 Trend Line Indicator

When the market moves upwards it forms higher highs & higher lows forming a bullish market movement - Up-ward Trend. An upward trendline can then be drawn by connecting/joining these higher lows.

To draw this upwards trendline setup we use supports. To draw the upwards trendline correctly 2 support areas are needed. When gold price touches the upwards trend-line we buy & place stop losses just a couple of pips below the upwards trendline. Diagram below shows an example of an upward 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 therefore traders only will open 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 many buyers will wait til xauusd price retraces downward and hits these retracements levels market the upward trendline to open 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 drawn by plotting a line that is parallel to the upward trendline and then adjusted to touch the tops boundary of the price movement. This then forms an upwards channel & as long as remains between these two channels the bullish market movement will continue heading upwards.

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

How to Trade the Upward Channel

This upward channel is used by online traders to show the levels where it's best to take profit orders. Traders will book some profit once the price touches upper channel & wait out for another retracement before opening a long buy trade 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.

Below is the screen shot Image of the MT4 drawing tool bar. To draw a trend line on a chart click on this MetaTrader 4 trendline plotting tool and select and choose the point where you as a trader want to plot the trend line.

MetaTrader 4 Tools for Drawing Trend-lines and Price Channels

This is one of the learn trading analysis lesson among the many learn trading tutorials on this website located on the side navigating menu, where you'll learn how to draw trend lines & analyze these trend lines setups.

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