Upward Trend Lines & Channels - MetaTrader 4 Tools for Drawing Trend Lines and Channels

An upwards trend line is plotted below the trend setup by connecting at least 2 lows. This upward trend line will draw a line that show the general direction of the market.

The example below shows how price moves when it is moving in a bullish market. The price will move upwards forming support levels.

Since the market moves in a zigzag manner traders normally draw a trend line which portrays the general up-ward direction of the market.

A uptrend occurs when the fore price makes consecutive higher highs and higher lows. Each price high being 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 up-wards trendline but does not penetrate it. A uptrend remains in place until this series of higher highs and higher lows is broken.

A downside penetration of an upward trend line is a technical sell trading signal, and usually the first indication that an upwards trend might soon end.

Drawing an Upward Forex Trend Line - Upward Forex Trend Line MT4 Trend Line Indicator

When the market moves up-wards it forms higher highs & higher lows forming a bullish market movement - Upward Forex Trend. An upward trend line can then be drawn by connecting these higher lows.

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

The upward trend line setup will show the general direction of the market as bullish therefore traders will only open buy long trades as long as price is within this upward trend bullish market setup and within the support levels. These support levels are the levels where if the market retraces then these points will provide strong supports for the price. This is why many forex buyers will wait until price retraces downwards and hits these retracements levels market the upward trend line to open buy trades. Trades opened at this support levels have a high Risk to Reward Ratio with minimum draw down.

In the above upwards trend line setup the trader would have opened buy/long trades from the signals generated at the support1, support2, support3 and these trades would have made a lot of profits with minimum amount of drawdown/retracement.

Upward Forex Channel - Upward Forex Channel MetaTrader 4 Channel Indicator

An upwards channel is plotted by drawing a line that is parallel to the upward trend line & then adjusted to touch the top boundary of the price movement. This then forms an upwards channel and as long as the price stays between these two trend channels the bullish upward market movement will continue heading upwards.

Trading the Channel - How to Trade Upward Forex Channel

This upwards channel is used by traders to show levels where it's best to take profits. Traders will take some profit once the price touches the upper channel & wait for another retracement before opening a long buy trade again.

MT4 Tools for Drawing Trend Lines & Channels

The MetaTrader 4 Trend Line Indicator drawing tools to draw these trend lines & channels setups on the MT4 are located on the MetaTrader 4 drawing tool bar within the MetaTrader 4 platform, To access this MT4 tool bar if it is not activated on your platform, Click in "View" Next to "File" menu at the tops left corner of MT4 platform & click View, Then Click on Tool-bars, Then Check "Lines Tool Bar" by clicking on it.

Shown Below is the screenshot 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 select the point where you want to plot the trend line.

This is one of the learn forex analysis lesson among the many learn forex trading tutorials on this website located on the side navigation menu, where you will learn how to draw trend lines & analyze these trend lines setups.