Trendline PDF

Example of How to Trade Trend Lines Signals

Traders should use the upwards trendline to open buy stock trades once the price tests the upward trend line.

Trendlines Tools - Trendline Indicator MT4 - Trendline Strategy Method

Example of How to Trade Trend Lines Signals

Traders should use the down-wards trendline to open sell stock trades once the price tests the downward trend line.

Trendlines Tools - Trendline Indicator MT4 - Trendline Strategy Method

How to Use Trendlines Signals to Trade Indices

The trend is your friend. Is a popular saying among traders because as a trader you should never go against the trend. trend is the most reliable strategy used to trade because once the prices start to move in one direction they can move in that direction for quite some time within the trend - therefore using this trend strategy gives traders the opportunity to make profits from the online market.

To identify a trend -traders use trendlines. trendlines are provided on the MetaTrader 4 charts and traders can use these trendline drawing tools on the MetaTrader 4 platform to draw trendlines on charts.

Traders can then analyze trends on the charts using these trendlines.

Guidelines of How to Draw Trendlines on Charts

1. Use candlestick trading charts to draw trendlines

2. The chart points used to draw the trendlines - upward trendlines are along the lows of the price candlestick bars in a bullish trend. An upward bullish trend is defined by higher highs & higher lows of the price.
3. The chart points used to draw the trendline - downward trendlines are along the highs of the price bars in a bearish trend. A bearish downward trend is defined by lower highs & lower lows of the price.
4. The chart points used to draw the trendlines are extremes points - the high or the low price. These extreme price points are considered important because a price close beyond the extreme tells traders the trend may be reversing. This is an entry or an exit trade signal.
5. The more often a trendline is tested by price but it's not broken, then the more powerful the trend signal.