How to Trade a Indices Uptrend?

Up Indices trend is when the stock indices price of a stock indices chart is moving higher and higher. Indices Trading indices prices generally close higher than where they opened.

How to Trade Upward Indices Trend: Indices traders use the upward indices trend direction to open buy indices trades

Drawing a Indices Upward Indices Trend Line

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

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

Strategy for Trading a Indices Upward Indices Trend - Drawing a Indices Upward Indices Trend Line

The upward indices trend setup will show the general direction of the stock indices trading market as bullish therefore indices traders will only open buy long trades as long as stock indices price is within this indices up trend setup and within the support levels.

These support levels are the levels where if the stock indices trading market retraces then this support points will provide strong supports for the indices price. This is why many buyers will wait until stock indices price retraces downwards and hits these retracements levels on the upward indices trend line to open buy stock indices trades. Trades opened at these levels have a high Risk:Reward Ratio and have little drawdown.

In the above setup the indices trader would have opened buy stock indices trades form the stock indices signals generated at the support 1, support 2, support 3 and these buy stock indices trades would have been opened with minimum amount of draw-down/retracement.

Upward Indices Channel

A indices channel is drawn by drawing a line that is parallel to the upward indices trend line and then adjusted to touch the top boundary of the stock indices price movement. This then forms a channel - upward channel and as long as the stock indices price stays between these two channels the bullish market indices trend movement will continue moving up.

Upward Indices Channel and Upward Indices Trend Trading Strategy

Trading the Upwards Indices Channel

This upwards indices channel is used by stock indices traders to show levels where it best to take profits. Traders will take some profit once the stock indices price touches the upper channel and wait for another retracement before opening a buy indices trade again.