Draw a Metals Trendline on a Chart

Metals Trading How to Draw a Metals Trend-Line on a Chart - How to Draw Metals Trend Lines on Metal Charts

Principles of How to Draw a Metal Trend-Line on a Chart

1. Use metals candle-stick charts to draw metals trend lines

2. The points used to draw a metals trend-line on a metals chart are along the lows of the metals price bars in a bullish metals market. An upward bullish metals trend is defined by higher highs and higher lows.
3. The points used to draw a metals trend-line on a metals chart are along the highs of the metals price bars in a bearish metals market. A downward bearish metals trend is defined by lower highs and lower lows.
4. The points used to draw metals trend lines on the metal charts are the extremes points - the high or the low metals price. These extremes are important because a close beyond the extreme chart points tells metals traders the metals trend might be changing. This is an entry or an exit metals trade signal.
5. The more often a metals trend-line on a metals chart is hit but it is not broken, the more powerful its metals trend signal.

Example 1: How to Draw a Metal Trading Upwards Metal Trend-Line on a Chart

To draw an upward metals trend-line on a metals chart use two support points in a bullish upwards metals trend so as to draw the upwards metals trend line and then extend the metals trend line as displayed below. Upwards metals trend-line on a metals chart will show the general direction of metals prices and as long as metals price is above this upwards metals trend line then the upwards metals trend will remain intact - bullish upwards metal trend.

If metals prices move below the upward metals trend line which is the support level for the bullish upwards metals trend then metal traders should close all their open metal trades - because this might be a metals trend reversal trading signal. In an upward metals trend metals price should generally stay above support area which is marked by the upward metals trend line on the metals trading charts.

Draw a Metals Trading Up Metals Trendline on a Chart in Metals Trading

How to Draw an Upward Metals Trend Line on a Chart - How to Draw a Metals Trend-Line on a Chart

Example 2: How to Draw a Metal Trading Downwards Metal Trend-Line on a Chart

To draw a downward metals trend-line on a metals chart use two resistance points in a bearish downwards metals trend so as to draw the downward metals trend line and then extend the metals trend line as shown below. Downwards metals trend-line on a metals chart will show the general direction of metals prices and as long as metals price is below this downward metals trend line then the downwards metals trend will remain intact - bearish downwards metal trend.

If metals prices move above the downwards metals trend line which is the resistance level for the bearish downwards metals trend then traders should close all their open metal trades - because this might be a metals trend reversal trading signal. In an downwards metals trend metals price should generally stay below the resistance level which is marked by the downward metals trend-line on a metals trading chart.

Draw a Metals Trading Down Metals Trendline on a Chart in Metals Trading

How to Draw Downward Metals Trend Line on a Chart - How to Draw a Metals Trend-Line on a Chart