How To Draw Indices Trend Lines and Channels on Indices Trading Charts
Sometimes support and resistances are formed diagonally in a similar way like a staircase. This forms a indices trading trend which is a sustained movement in one direction either upwards or downwards.
A indices trading trend line depicts the points of support and resistance for the indices price, depending on the direction of the indices trading market. For an upward moving indices trading market indices trading trend  the indices trading trend line will shows the points of support and for a downward moving indices trading market indices trading trend  the indices trading trend line will show the areas of resistance  indices trading trend lines are mainly used by many indices traders to determine these resistance and support levels on indices trading charts.
A Indices Trend line is a slanting straight line that connects two or more indices price points and then extends into the future to act as a level of support or resistance. There are two types of indices trading trend lines: upward indices trading trend line and downward indices trading trend line. indices trading trend line is an aspect of indices trading technical analysis that uses indices trading line studies to try and predict where the next indices price move will head to. A indices trader must know how to draw and interpret indices trading signals generated by this indices trading trend line tool.
The basis of this indices trading technical analysis is based upon the idea that indices trading markets move in trends. indices trading trend lines are used to show three things.
 The general direction of the indices trading market  up or down.
 The strength of the current indices trading trend  and
 Where future support and resistance will be likely located
If indices trading trend lines forms in a certain direction then the indices trading market usually moves in that direction for a period of time until a time when this indices trading trend line is broken.
Drawing these indices trading trend lines on a indices trading chart shows the general indices trading trend of the indices trading market which can either be upward or downward.
Below is an example of how to draw these indices trading trend lines on indices trading charts
Tutorial: How to Draw Upward Indices Trend Line and Trade Upward Indices Trend Move
Tutorial: How to Draw Indices Downward Indices Trend Line and Trade Downward Indices Trend Move
The MT4 indices trading software provides indices trading charting tools for drawing these indices trading trend lines on indices trading charts. To draw indices trading trend lines onto a indices trading chart, indices traders can use the indices trading tools provided on the MT4 indices trading software that is shown below.
To draw indices trading trend lines on a indices trading chart just click the Indices MT4 Draw Indices Trend Line Tools as shown above on the MT4 indices trading platform technical analysis software and select point A where you want to start drawing the indices trading trend line and then point B where you want the indices trading trend line to touch. You can also right click on the indices trading trend line and on the properties option select the option to extend its ray by ticking the "ray check box", if you do not want to extend the indices trading trend line, then uncheck this option in your MT4 indices trading platform. You can also change other indices trading trend line properties such as color and width on this property popup window of the indices trading trend line properties. You can download MT4 software and learn indices trading trend line technical analysis with it.
The indices trend is your friend. Is a popular saying among investors because you should never go against it. This is the most reliable method to trade Indices because once indices trading prices start to move in one direction they can move in that particular direction for quite some time  therefore using this indices trading trend trading method presents opportunity to make profits from the indices trading market.
Principles of How to Draw Indices Trend Lines

Use candlestick indices trading charts
 The points used to draw the indices trading trendline are along the lows of the indices price bars in a rising indices trading market. An upward bullish indices trading trend move is defined by higher highs and higher lows.
 The points used to draw the indices trading trend line are along the highs of the indices price bars in a falling market. A downward bearish indices trading trend move is defined by lower highs and lower lows.
 The points used to draw indices trading trend lines are extremes points  the high or the low indices price. These extremes are important because a close beyond the extreme tells investors the indices trading trend of the indices trading instrument might be changing. This is an entry or an exit signal.
 The more often a indices trading trend line is hit but not broken, the more powerful its signal.
There are two main ways of trading this indices trading trend line technical analysis setup:
 The Indices Trend Line Bounce  Indices Trend Line Bounce
 The Indices Trend Line Break  Indices Trend Line Break
Technical Analysis Methods of Indices Trend Lines
The indices trading trend line bounce is a continuation indices trading signal where indices price bounces off this indices trading trend line to continue moving in the same direction. In a downward indices trading trend, the indices trading market will bounce downwards after hitting this indices trading trend line level which is the resistance level. In an upward indices trading trend, the indices trading market will bounce upwards after hitting this indices trading trend line level which is the support level.
The indices trend line break is a reversal indices trading signal where the indices trading market goes through the indices trading trend line and starts moving in the opposite direction. When a indices trading up indices trend is broken then the sentiment of the indices trading market reverses and becomes bearish and when a indices trading down indices trend is broken then the indices trading market sentiment reverses and becomes bullish.
For very strong indices trading trends, after this indices trend line break signal, the indices price will consolidate for some time before moving in the opposite direction. For short term indices trading trends then this indices trend line break indices trading signal will mean indices price may reverse immediately.
In indices trading, both the indices trading trend line bounce and the indices trend line break that are used in technical analysis charts are based upon these indices trading trend line levels being support and resistance levels.
Entry, Exit and Setting stops:
This indices trading trend line trading method is used to determine good entry and exit points, protective stops are placed just above or below these indices trading trend lines. The indices trading trend line bounce is a lowrisk entry method used by indices traders to place entry trades after indices price has retraced. Indices trades are setup along these indices trading trend line levels and a stop loss placed just above or below these indices trading trend lines.
The indices trend line break is a crucial indicator of possible indices trend reversal. When the indices trading trend line is broken the indices price starts move in the opposite direction. This provides an early exit signal for indices traders to exit their open trades and take profits. When there a penetration of these indices trading trend line levels, it is a signal that the indices trading price can start moving in the opposite direction.
Unlike other indices trading technical analysis indicators there is no formula used to calculate the indices trading trend line, this indices trading trend line formation is just drawn between two chart points on the indices trading chart.