Upward XAUUSD Trend Lines and Channels
An upward xauusd trend line is drawn below the xauusd trend pattern by connecting at least two lows. This upward xauusd trend line will draw a line that show the general direction of the gold market.
The diagram below shows how gold price moves when it is moving in a bullish market. The gold price will move upwards forming support levels.
Since the xauusd market moves in a zigzag manner xauusd traders normally draw a xauusd trend line which shows the general upwards direction of the gold market.
A xauusd up trend occurs when the fore gold price makes consecutive higher highs and higher lows. Each high is higher than the previous high - higher high , and each low is higher than the previous low - higher low.
XAUUSD Trading Up xauusd trend lines gain more validity each time gold price touches this upward xauusd trend line but does not penetrate it. A xauusd up trend remains in place until this series of higher highs and higher lows is broken.
A downside penetration of an upward xauusd trend line is a technical sell xauusd signal, and usually the first indication that an upward xauusd trend may soon end.
Upward XAUUSD Trend Line MetaTrader 4 XAUUSD Trend Line Indicator
When the xauusd market moves up it forms higher highs and higher lows forming a bullish market movement - Upward XAUUSD Trend. An upward xauusd trend line can then be drawn by connecting these higher lows.
To draw this upward xauusd trend line setup we use supports. To draw the upward xauusd trend line correctly two support levels are needed. When gold price touches the upward xauusd trend line we buy and place stop loss xauusd orders just a few pips below the upward xauusd trend line. The diagram below shows an example of an upward xauusd trend line.
The xauusd upward trend line setup will show the general direction of the xauusd market as bullish therefore xauusd traders will only open buy long gold trades as long as gold price is within this upward xauusd trend bullish market setup and within the support levels. These support levels are the levels where if the xauusd market retraces then these points will provide strong supports for the gold price. This is why many xauusd buyers will wait until gold price retraces downwards and hits these retracements levels market the upward xauusd trend line to open buy gold trades. XAUUSD trades opened at this support levels have a high Risk to Reward Ratio with minimum draw down.
In the above upward xauusd trend line xauusd setup the xauusd trader would have opened buy/long gold trades from the signals generated at the support1, support2, support3 and these gold trades would have made a lot of profits with minimum amount of draw-down/retracement.
Upward XAUUSD Trading Channel
An upward xauusd channel is drawn by drawing a line that is parallel to the upward xauusd trend line and then adjusted to touch the top boundary of the gold price movement. This then forms an upward xauusd channel and as long as the gold price stays between these two channels the bullish market movement will continue moving up.
How to Trade Upward XAUUSD Trading Channel
This upward xauusd channel is used by gold traders to show levels where it is best to take profits. XAUUSD traders will take some profit once the gold price touches the upper channel and wait for another retracement before opening a long buy xauusd trade again.
MetaTrader 4 Tools For Drawing XAUUSD Trend Lines and Channels
The XAUUSD Trading MetaTrader 4 Trend Line Indicator drawing tools to draw these xauusd trend lines and xauusd channels setups on the MT4 are located on the MetaTrader 4 drawing tool bar within the MetaTrader 4 gold platform, To get this MT4 tool bar if it is not activated on your xauusd platform, Click in "View" Next to "File" at the top left corner of the MT4 gold platform and click View, Then Click on Tool bars, Then Check the "Lines Toolbar" by clicking on it.
Below is the screenshot Image of the MT4 drawing tool bar. To draw a xauusd trend line on a xauusd chart just click on this MT4 xauusd trend line drawing tool and select the point where you want to draw the xauusd trend line.
This is one of the learn xauusd technical analysis lesson among the many learn xauusd tutorials on this website located on the side navigation menu, where you will learn how to draw xauusd trend lines and analyze these xauusd trend lines setups.