MT4 Tools for Drawing Metal Trendlines and Metal Trading Channels
How to Draw Downward Metal Trend Lines on Metal Charts
A downwards metals trend-line is plotted above the metals downward metals trend pattern formed by consecutive lower highs, the downward metals trend-line must connect at-least 2 highs, with the most recent high being lower. For our metals downward metals trend examples we shall use the MT4 technical analysis software metals charts to illustrate example of downward metal trend.
Since metals price moves down in a zigzag manner metals traders normally draw a downward metals trend-line which shows the general downward direction of the metals prices. In metals market technical analysis, this general metals price direction is referred to as the TREND by metal traders. In metal trading analysis definition we can define this down metals trend line is drawn on Metal chart showing the resistance areas (bearish market direction).
A down metals trend occurs when the metals price forms a series of lower highs and lower lows. Each price high is lower than the previous high - lower high, and each low is lower than the previous low - lower low therefore showing bearish metals price movement.
Metals Down trend-lines gain more validity each time metals price touches the downwards metals trend line but does not penetrate the metals trend line. A down metals trend remains the general direction until this series of lower highs and lower lows is broken.
In metals trading analysis, An upside penetration of a down metals trend line is a technical buy metals trading signal, and usually the first indication that the bearish direction of metals prices may soon reverse.
Drawing a Downwards Metals Trend Line
When it comes to learning how to draw & learning metal trading analysis of metals charts, you need to know that when the metal market is bearish it forms lower lows and lower highs forming a downward general market direction. These are the points that are used to draw the downward metals trend line.
To draw this metals downward metals trend setup we use resistances and to do it correctly two resistances are needed. When metals price touches this metals trend line, then we sell and place stop loss just a few pips above the sloping resistances:
How to Trade Downwards Metals Trend Line
When trading with this metals trend line trading method, this metals trend line setup will show the general direction of the market as downward therefore metals traders will only open short sell metal trades. These are the levels where if metals price retraces then these points will provide strong resistance. This is why many short sellers will wait until metals price retraces upwards & hits these retracements levels to open sell metal trades. Metals trades opened at these levels have a high Risk to Reward Ratio with minimum draw down.
For Example, in the above metals trading example, a trader would have opened short sell metals trading signals at the resistance1, resistance2, resistance3 and these sell metal trades would have made a lot of trading profits with minimum amount of drawdown/retracement.
Downward Metal Channel MT4 Channel Indicator
A metals downward channel is plotted by drawing a line that's parallel to the downward metals trend line & then adjusting it to touch the bottoms boundary of the metals price movement. This then forms a downwards metals channel & as long as the metals price stays between these two channels the general metals market direction is intact the metal market direction will continue being bearish.
Trading The Downwards Metals Trading Channel
The downward metals channel is used by metal traders to show levels where it is best to take profits. Metals traders will take some profit once the metals price touches the lower channel & wait for another retracement before opening a short sell metals trading again.
Downward Metal Trading Channels MT4 Channels Indicator
The metals trading tools to draw these metals channels studies on the MT4 metals trading charts are found on the Lines Toolbar within the MT4 metal trading platform, to access this MT4 tool bar if it is not activated on your MT4 Metals Platform, Click in "View" Next to "File" at the top left corner of the MetaTrader 4 Metals Trading Software & click View, Then Click on Toolbars, Then Check the Lines Tool-bar by clicking on it.
Below is the screenshot of these MT4 tools: just click on this MT4 channels drawing tool and select the point to where you want to place this metals channels tool on the metals trading chart.
MetaTrader 4 Technical Analysis Charts - Downwards Metal Trading Channels
MT4 Toolbar - MT4 Tools for Drawing Metals Trend-Lines & Metal Trading Channels used to obtain these metals trend line drawing tools is shown above, to draw these metals trend line setups or metals channels, just select the above MT4 metals trend line drawing tools shown on the MT4 software and select the two points where you want to draw the metals downward trend line.
This metals trend line metals trading strategy is one of the simplest and popular metals indicators used by metal traders to analyze the metal market trend direction.
