Drawing Trend Indicator MetaTrader 4
How to Draw Upwards Trend-Lines on Charts
An upwards trend line is drawn below the trend setup by connecting at least two price lows. This upwards trend line will draw a trendline that illustrate the general direction of the market.
The example shown below shows how gold price moves when it is moving in a bullish upwards trend market. The price will move up-ward forming support zones.
Since the price moves in a zig zag manner traders normally draw a trend line which shows the general upwards trend direction of market.
A upwards trend forms when the fore price will continue making consecutive higher highs and higher lows. Each price high is higher than the previous high - higher high, and each low is higher than the previous low - higher low.
Uptrend-lines gain more validity each time price touches this upward trend-line but does't penetrate it. A upwards trend remains in place until this series of higher highs and higher lows is broken.
A downside penetration of an upwards trend line is a technical sell trading signal, and usually the first indication that an upward trend might soon end.
Drawing The Correct Gold Trading Trend Line Learn Traders Important Skills
When the market moves up it forms higher highs and higher lows forming a bullish trend movement - Upward Trend. An upward trend-line can then be plotted by connecting these higher lows.
To draw this upward trend-line we use support zones. To draw the up-ward trend-line correctly two support zones are needed. When price touches the up-ward trend line we open buy trade & place stop loss orders just a few pips below the upward trend line. Example shown below shows an example of an upward trend line.
Drawing The Correct Upward Trendline Traders Guide - Day Trend Lines XAUUSD Method - Drawing Trend Indicator MT4
The upwards trend line strategy will show the general trend direction of market as upward - therefore traders only will open buy gold trades as long as price is moving within this upwards trend set-up within the support areas. These price support areas are levels where if the price retraces then these levels will provide strong supports for the price. This is why many buyers will wait til price retraces downward and hits these trendline retracements levels so as to open buy gold trades. Trades opened at this support levels have a high Risk to Reward Ratio with minimum xauusd trading draw down - price pull back.
In the above upward trend line strategy one would have opened buy gold trades from the signals generated at support 1, support 2, support 3 & these trade transactions would have earned profits with minimum amount of trading draw down - price pull back.
Drawing Trend Indicator MT4
How to Draw Downward Trendlines on Charts
A downward trend-line is plotted above the downward trend pattern formed by consecutive lower price highs, the downward trend line must connect at-least 2 price highs, with the recent most price high being lower. For our gold trading downwards trendline example we shall use the MT4 gold trading analysis charts to illustrate example of downward trend.
Since price moves downward in a zig zag manner traders normally draw a downward trend-line which shows the general downwards trend direction of prices. In trading analysis this general price direction is known as the Trade TREND by online traders. In trading analysis definition we can define xauusd downward trend line is drawn on a chart showing the resistance areas bearish market trend trading direction.
Drawing Correctly Downward Trend Line Traders Guide - Day Trend Lines XAUUSD Method
A downward trend forms when the price forms series of lower highs and lower lows. Each price high is lower than the previous price high - lower high, & each price low is lower than the previous low - lower low therefore showing bearish price movement - downwards trend.
Downwards trend lines gain more validity every time price touches the down-ward trend line but doesn't penetrate the trendline. A downwards trend remains the general trend direction til this sequence of price lower highs and price lower lows is breached.
In trading analysis, An up side penetration of a downwards trend line is a technical buy signal, & is usually the first signal that the bearish price trend might soon reverse.
Drawing a Downwards Gold Trendline
In learning how to draw trend lines correctly - you need to know that when the trend is bearish price forms lower price lows and lower price highs forming a general downwards market trend direction. These are the points that are used to plot the downward trend line.
To draw this downwards trend line we use resistance zones and to draw a downwards trend line correctly 2 resistance areas are needed. When price touches this trend-line, then we open sell trades & place stop loss orders just a few pips above the sloping resistances:
Day Trend Lines Strategy
When xauusd with this trend line strategy, this trend line strategy will show the general trend direction of market as downward therefore traders only will open sell trades. These trend line levels are levels where if price pulls back then these zones will provide strong resistance. This is why many sellers will wait til price retraces upward and hits these trend line retracements levels to open sell trades. Trades opened sell trades at these levels have a high Risk-:-Reward Ratio with minimum draw down.
For Example, in the above xauusd trading example, a trader would have opened sell trades at the resistance 1, resistance 2, resistance 3 & these sell trades would have earned profits with minimum amount of trading draw down - price pull back.
Drawing The Correct Gold Trading Trend Line Learn Traders Important Skills
The Drawing Trend Line Indicator MT4 tools to draw these trend lines in the MetaTrader 4 platform are--locatedcan--be--found on the MetaTrader 4 drawing toolbar within the MetaTrader 4 software, To get this MetaTrader 4 toolbar if it isn't displayed on your MetaTrader 4 software, Click in 'View' Next to the 'File' menu at top left corner of MetaTrader 4 platform & click View, Then Press on Tool-Bars, Then Check the 'Lines Tool-Bar' by clicking on it.
Below is the image Image of the MT4 drawing tool-bar. To draw a trend line on a chart click on this MetaTrader 4 trend-line plotting tool and choose the points where you want to draw the trendline on the MT4 chart.
Drawing Correctly Trend Line Traders Guide - Drawing Trend Indicator MT4
This trend line strategy is one of the popular indicators used by traders to analyze the price trend trading direction.
Drawing Correctly Trend Line Traders Guide - Day Trading Trend Lines Method - Drawing Trend Line Indicator MetaTrader 4 - Drawing Trend Line Gold Indicator MT4
