Drawing Trend Technical Indicator MT4

How to Draw Upwards Trendlines on Indices Charts

An upwards trendline is plotted below the trend pattern by connecting at least two price lows. This upwards trend line will draw a trendline that show the general direction of the market.

The example explained and illustrated below shows how price moves when it is moving in a bullish up-ward trend market. The price will move up-ward forming support zones.

Since the price moves in a zigzag manner traders normally draw a trendline which displays the general upward trend direction of the market.

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

Indices Uptrendlines gain more validity each time price touches this upward trend line but does not penetrate it. A upwards trend remains in place until this sequence of higher highs & higher lows is broken.

A down-side penetration of an upward trendline is a technical sell signal, and usually the first indication that an upwards trend may soon end.

Drawing an Up-ward Stock Trend Line

When the market moves upwards it forms higher highs & higher lows forming a bullish trend movement - Indices Upwards Trend. An upwards trendline can then be plotted by connecting these higher lows.

To draw this up-wards trendline we use support areas. To plot the upward trend line correctly two support levels are needed. When price touches upward trendline we open buy trade and place stop loss orders just a few pips below the upwards trend line. Indices example explained and illustrated below shows an example of an upward trend line.

Drawing The Correct Upwards Trendline Traders Most Important Skill - Day Trend Lines Strategy Method - Drawing Trend Indicator MT4

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

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

Drawing Trend Technical Indicator MT4

How to Draw Downward Trend Lines on Indices Charts

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

Since price moves downwards in a zig zag manner traders normally draw a downwards trendline which displays the general down ward trend direction of the prices. In technical analysis this general price direction is referred to as the Indices TREND by stock traders. In technical analysis definition we can define downwards trendline is plotted on chart showing the resistance levels bearish market trend direction.

Day Trend Lines Strategy Method - Drawing Trend Indicator MT4

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

Indices Downward trendlines gain more validity every time price touches the downwards trendline but does not penetrate the trendline. A downward trend remains the general trend direction until this sequence of price lower highs & price lower lows is broken.

In technical analysis, An up side penetration of a downwards trend line is a technical buy signal, & is usually the first signal that the bearish price trend may soon reverse.

Downwards Trendline MT4 Trendlines Indicator

When it comes to learning how to draw trendlines correctly - you need to know that when the trend is bearish price forms lower price lows & lower price highs forming a general downwards market trend direction. These are the points that are used to plot the downwards trend line.

To draw this downwards trend line we use resistance zones & to draw a downwards trend line correctly two resistance areas are needed. When price touches this trend line, then we open sell stock trades & place stop loss orders just a few pips above the sloping resistances:

Trading This Downward Indices Trend Line

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

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

Drawing Trend Technical Indicator MT4

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

Shown Below is screenshot Image of the MetaTrader 4 drawing tool-bar. To draw a trendline on a chart click this MT4 trend line plotting tool & choose the points where you want to draw the trend line in MT4 chart.

Drawing Trend Indicator Meta Trader 4 - Drawing Trendline Indicator MT4

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

Drawing The Correct Trend Line Traders Most Important Skill - Day Trading Trend Lines Strategy Method - Drawing Trendline Indicator MT4 - Drawing Trend Line Indicator MT4