How to Draw Trendlines & Technical Analysis of Trend Lines in Indices Trading
How to Draw Trendlines in Meta Trader 4 Software
The MetaTrader 4 software provides charting tools for drawing the trendlines in MetaTrader 4 charts. To draw trend lines on a chart in MT4 software, stock traders can use trendline drawing tool provided in MT4 software that is shown on the examples illustrated below.
How Do You Draw Trend-Lines and Technical Analysis of Trend-Lines in Indices Trading
How Do I Draw Trend Lines on MetaTrader 4 - How to Draw Trendlines Technical Analysis
To draw trendlines on a chart - just click MT4 trendline drawing tool above on the MT4 trading analysis software and select point A where you want to start drawing the trend line and then point B where you want the trend line to touch. You also can rightclick on trend line and on the trend line properties option choose the option to extend its ray by ticking "ray check box", if you do not want to extend the trendline, then untick/uncheck this option in your MetaTrader 4 platform -trendline properties. You also can change other trend line properties such as color and width on this trendline property pop up panel of the trendline properties. You can download MT4 stock indices trading and learn how to draw trendlines & learn trendline technical analysis with it.
Technical Analysis of Trendlines with Examples
There are 2 trading analysis techniques used to trade the trend lines:
- Trend Line Break
- Trend-Line Bounce
Example 1: Technical Analysis Methods of Trend Lines
The trendline bounce is a continuation signal where the price bounces off the trend line and continues in the same direction as that of the market trend.
Trendline Bounce Technical Analysis in Upwards Trend
- In an upward trend, the price will bounce upwards after hitting this upwards trend line level which is the support zone.
Up Trend - Trend Line Bounce after Touching The Support Levels Provided by the Upward Trend Line
Trend Line Bounce Technical Analysis How to Draw Trendlines & Technical Analysis of Trend Lines in Indices Trading
Trendline Bounce Technical Analysis in Down Trend
- In a downwards trend, the market will bounce downwards after hitting this trendline level which is the resistance area.
Down Trend - Trend Line Bounce after Touching The Resistance Levels Provided by Downwards Trend Line
Trend Line Bounce Technical Analysis How to Draw Trendlines & Technical Analysis of Trend Lines in Indices Trading
Example 2: Technical Analysis Methods of Trend Lines
The trend line break is a reversal where the market goes through the trendline and starts moving in opposite trend direction.
Trend-Line Break Technical Analysis
When a up trend-line is broken then sentiment of the market reverses & becomes bearish
How Do You Draw Trend-Lines and Technical Analysis of Trend-Lines in Indices Trading
Trend-Line Break Technical Analysis
When a down trendline is broken then sentiment of the reverses & becomes bullish
How Do You Draw Trend-Lines and Technical Analysis of Trend Lines in Indices Trading
NB: for very strong trends, after this trend line break reversal signal setup, price will consolidate for some time before heading in opposite trend direction. For short term market trends then this trendline break reversal signal will mean trading price might reverse direction immediately.
Get More Tutorials & Topics:
- Bollinger Bands Indices Trend Reversals
- How Can I Add FTSE MIB 40 Index in MT4 Platform?
- US 500 Market Close Time
- DJ30 Pip Value Defined
- How to Trade Indices & Learning Online Indices Trading Tutorial Course
- What is the Meaning of Reversal Chart Patterns?
- Chandes Momentum Oscillator Stock Indices Indicator Technical Analysis in Trading
- Learn Stock Index UsTec 100 Indices
- How Can I Trade MetaTrader 5 Stock Indices Trendlines Indicator & MetaTrader 5 Stock Indices Channels Indicator on MT5 Platform?
- Aroon Oscillator Stock Indices Technical Indicator Analysis on Stock Indices Charts
