Drawing Indices Trend Indicator MetaTrader 4

How to Draw Indices Upward Trend Lines on Stock Indices Charts

An upward indices trend line is drawn below the indices trend pattern by connecting at least two stock indices price lows. This upward indices trend line will draw a trend line that show the general direction of the stock indices trading market.

The example explained and illustrated below shows how stock indices price moves when it is moving in a bullish upward indices trend market. The stock indices price will move upwards forming support levels.

Since the stock indices price moves in a zigzag manner indices traders normally draw a indices trend line which shows the general upwards indices trend direction of the stock indices trading market.

A upward indices trend occurs when the fore stock indices 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.

Indices Uptrend lines gain more validity each time stock indices price touches this upward trend line but does not penetrate it. A upward indices trend remains in place until this series of higher highs and higher lows is broken.

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

Drawing an Upward Indices Trend Line

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

To draw this indices upward trend line we use support levels. To draw the indices upward trend line correctly two support levels are needed. When stock indices price touches the upward indices trend line we open buy indices trade and place stop loss stock indices orders just a few pips below the indices upward trend line. The indices example explained and illustrated below shows an example of an upward indices trend line.

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

In the above indices upward trend line indices trading strategy a indices trader would have opened buy stock indices trades from the indices signals generated at the support 1, support 2, support 3 and these stock indices trades would have made profits with minimum amount of indices draw down - stock indices price retracement.

Drawing Indices Trend Indicator MetaTrader 4

How to Draw Stock Indices Downward Trend Lines on Stock Indices Charts

A downward indices trend line is drawn above the indices downward trend pattern formed by consecutive lower stock indices price highs, the indices downward trend line must connect at least two stock indices price highs, with the most recent stock indices price high being lower. For our indices downward trend line example we shall use the MetaTrader 4 indices technical analysis trading charts to illustrate an example of downward stock indices trend.

Since stock indices price moves downward in a zigzag manner indices traders normally draw a indices downward trend line which shows the general downward indices trend direction of the indices prices. In indices technical analysis this general stock indices price direction is referred to as the Indices TREND by stock indices traders. In indices technical analysis definition we can define indices downward trend line is drawn on a indices chart showing the resistance levels bearish indices market trend direction.

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A indices downward trend occurs when the stock indices price makes a series of lower highs and lower lows. Each stock indices price high is lower than the previous high - lower high, and each stock indices price low is lower than the previous low - lower low therefore showing bearish stock indices price movement - downward stock indices trend.

Indices Downward trend lines gain more validity each time stock indices price touches the downward indices trend line but does not penetrate the indices trend line. A downward indices trend remains the general indices trend direction until this series of stock indices price lower highs and stock indices price lower lows is broken.

In indices technical analysis, An upside penetration of a indices downward trend line is a technical buy indices trading signal, and is usually the first signal that the bearish stock indices price trend may soon reverse.

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When it comes to learning how to draw indices trend lines correctly - you need to know that when the indices trend is bearish stock indices price forms lower stock indices price lows and lower stock indices price highs forming a general downward indices market trend direction. These are the points that are used to draw the downward indices trend line.

To draw this indices downward trend line we use resistance levels and to draw a downward indices trend line correctly two resistance levels are needed. When stock indices price touches this indices trend line, then we open sell stock indices trades and place stop loss stock indices orders just a few pips above the sloping resistances;

Trading This Downward Indices Trend Line

When indices trading with this indices trend line indices trading strategy, this indices trend line strategy will show the general indices trend direction of the indices market as downwards therefore indices traders will only open sell stock indices trades. These indices trend line levels are the levels where if stock indices price retraces then these levels will provide strong resistance. This is why many indices sellers will wait until stock indices price retraces upwards and hits these trend line retracements levels to open sell stock indices trades. Indices trades opened sell stock indices trades at these levels have a high Risk : Reward Ratio with minimum draw down.

For Example, in the above indices example, a indices trader would have opened sell stock indices trades at the resistance 1, resistance 2, resistance 3 and these sell stock indices trades would have made profits with minimum amount of indices draw down - stock indices price retracement.

Drawing Indices Trend Indicator MetaTrader 4

The Indices Drawing Indices Trend Line Indicator MetaTrader 4 indices tools to draw these indices trend lines on the MetaTrader 4 platform are located on the MetaTrader 4 drawing tool bar within the MetaTrader 4 platform, To get this MetaTrader 4 indices toolbar if it is not displayed on your indices MetaTrader 4 platform, Click in "View" Next to "File" at the top left corner of the MetaTrader 4 platform and click View, Then Click on Toolbars, Then Check the "Lines Toolbar" by clicking on it.

Below is the screenshot Image of the MetaTrader 4 drawing tool bar. To draw a indices trend line on a stock indices chart just click on this MetaTrader 4 indices trend line drawing tool and select the points where you want to draw the indices trend line on the MetaTrader 4 stock indices chart.

Drawing Indices Trend Indicator MetaTrader 4 - Drawing Indices Trend Line Indicator MetaTrader 4

This indices trend line trading strategy is one of the popular indices technical indicators used by stock indices traders to analyze the stock indices price trend direction.

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