How Do I Draw Metals Trend Lines Correctly?
Metals Trading How to Draw Metals Trend Lines Correctly - Detailed Tutorial on How to Draw Metals Trend Lines Correctly
Principles of How to Draw Metal Trend Lines Correctly
Use metals candle charts
- The points used to draw are along the lows of the metals price bars in a bullish metals trading market. An upward bullish metals trend is defined by higher highs & higher lows.
- The points used to draw are along the highs of the metals price bars in a bearish metals trading market. A downward bearish metals trend is defined by lower highs and lower lows.
- The points used to draw metals trend lines are extremes points - the high or the low metals price. These extremes are important because a close beyond the extreme tells metals traders the metals trend might be changing. This is an entry or an exit metals trading signal.
- The more often a metals trend line is hit but not broken, the more powerful its metals trend signal.
Example 1: How to Draw Metal Upwards Metal Trend Line Correctly
To draw an upward metals trend line correctly use two support points in a bullish upward metals trend so as to draw the upwards metals trend line and then extend the metals trend line as displayed below. Upward metals trend-line 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 upward metal trend.
If metals prices move below the upward metals trend line which is the support level for the bullish upwards metals trend then traders should close all their open metal trades - because this might be a metals trend reversal trading signal. In an upwards metals trend metals price should generally stay above support area which is marked by the upwards metals trend line.
How to Draw Metals Trend-Lines Correctly for Upwards Metals Trading Trend
How to Draw Metals Upwards Metals Trend-Line Correctly - How to Draw Metals Trend Lines Correctly
Example 2: How to Draw Metal Downwards Metal Trend Line Correctly
To draw a downwards metals trend line correctly use two resistance points in a bearish downward metals trend so as to draw the downwards metals trend line and then extend the metals trend line as displayed below. Downwards metals trend-line 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 downward 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 downward metals trend metals price should generally stay below the resistance level which is marked by the downward metals trend line.
How to Draw Metals Trend Lines Correctly for Downwards Metals Trading Trend
How to Draw Metals Downwards Metals Trend-Line Correctly - How to Draw Metals Trend Lines Correctly
