Upward Trendlines and Channels

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

The diagram below shows how gold trading price moves when it is moving in a bullish market. The gold price will move up-ward forming support regions.

Since the market moves in a zig-zag manner traders normally draw a trend line which shows the general upward direction of the market.

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

XAUUSD Up trend-lines gain more validity every time gold trading price touches/tests this upwards trend line but does not penetrate it. A up trend remains in place til this series of higher highs and higher lows is broken.

A down side penetration of an up-ward trend-line is a trading sell trade signal, and usually the first indication that an upwards trend might soon end.

Upward Trendline MetaTrader 4 Trend Line Indicator

When the market moves up it forms higher highs and higher lows forming a bullish movement - Upwards Trend. An upward trend line can then be drawn by connecting the higher lows.

To draw this up-ward trendline setup we use supports. To draw the up-ward trendline correctly 2 support areas are needed. When trading price touches/tests the up-ward trendline we buy and place stop loss orders just a few pips below the upward trendline. Diagram below shows an example of an upwards trend-line.

The upward trend-line setup will show the general market direction of the price as bullish hence traders only will open buy long trade positions as long as trading price is within this upward trend bullish market setup and within the support levels. These support zones are the levels where if the price retraces then these points will offer strong supports for the market price. This is why many buyers will wait til trading price retraces downwards and hits these retracements levels market the upwards trendline to open buy trades. Trade transactions opened at this support levels have a high Risk to Reward Ratio with minimum draw-down.

In the above up-ward trend line xauusd setup the online trader would have opened buy/long trades from the signals generated at the support1, support2, support3 and these gold trades would have made a lot of trading profits with minimum amount of drawdown.

Upwards Channel

An upwards channel is drawn by drawing a line that is parallel to the upward trend-line & then adjusted to touch the tops boundary of the price movement. This then forms an up-ward xauusd channel & as long as a stays and remains in between the 2 channels the bullish movement will continue heading and moving upward.

How Do I Trade Upwards Channel

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

MetaTrader 4 Tools for Drawing Trendlines & Channels

The MT4 Trendline Indicator drawing tools to draw these trend-lines & channels setups on the MT4 are located on the MetaTrader 4 drawing toolbar within the MetaTrader 4 platform, To get this MT4 toolbar if it is not activated on your platform, Press in 'View' Next to the 'File' menu at top left corner of MT4 platform software and click View, Then Click on Tool Bars, Then Tick 'Lines Toolbar' by clicking on it.

Below is the image Image of the MT4 drawing tool bar. To draw a trendline on a chart click on this MT4 trend line drawing tool & select the point where you as a trader want to plot the trend-line.

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

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