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