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 Meta Trader 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 explained 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 technical 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 can also rightclick on trend line and on the trend line properties option choose the option to extend its ray by ticking the "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 can also 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 technical 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 level.
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 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, price will consolidate for some time before moving in opposite trend direction. For short term market trends then this trendline break reversal signal will mean trading price might reverse direction immediately.
