Inserting Line Studies Tools on the MetaTrader 4 Trading Platform

The next option on Insert menu within MT4 platform is Line Studies Button. These tools are used to insert and draw trendlines or to place various trading analysis tools on charts. This button is illustrated below:

Line Studies in MetaTrader 4

The button can be used to insert the following on charts:

Vertical Line
Horizontal Line
Trend-Line
Trend by Angle

A trader might require to draw any of these line studies on charts for different purposes: each line study will be placed on the trading chart depending on the type of trading analysis that a stock index trader want to achieve.

Vertical Line

This is set on chart when a stock indices trader wants to mark a particular point in a trading chart, maybe to mark the time they bought indices or sold indices. To insert this vertical line on chart, a stock index trader will open insert menu, as illustrated above, then click on 'Vertical Line' option - to select this, cursor will also change to explain vertical line icon and then select point on chart where you as a trader want to draw this line.

Insert a Vertical To a Chart on MT4

Horizontal Line

On MT4 trade platform, this line is set on chart so as to mark a resistance area or a support level on the chart. The horizontal line can be drawn by selecting its button within the insert menu and then clicking on level where you want to place it.

Drawing a Horizontal Line on MT4

On the trading example above this horizontal line is drawn at trading price support level, the price bounces up the second time that it reaches this point. The trend then changes to upwards trend direction.

Trend-Line

This is one of the most often used analysis tool in indices. To draw this trend-line a indices trader can access this button from the insert menu. An upwards trend line in MT4 is illustrated below.

Trend Line Drawn in MetaTrader 4

To draw a trend line a trader has to have 2 points and join these points with the trend line and then extend it as shown above.

A trader can draw this trendline for either an upwards trend direction or downward trend direction

Trend-Line by Angle

Next option is to draw a trend by angle, this one resembles the ordinary trend line shown above, only that in addition it will show the angle at which the trend line is slanting which many trade transactions may use as a signal & specify to only trade if the angle is more than 30 degrees.

Customizing

As a trader you might want to change the formatting of a specific item for example let us use "Trend Line" study, if you want to edit its properties then you can select it by double clicking on it, then right-click on it and the following menu will show.

Changing

Common Properties

After the above menu appears (Note the trend line has three square points that you can click & drag with your mouse to adjust it to another point using these three squares), select the first option only "Trend Line Properties", the following popup panel window will appear.

From this menu one can rename the trend line, give it a description, change the style color to another color using the down arrow next to the color named "Blue" above or change the width property by selecting a different style from the 2 drop down arrow buttons just next to the color button, & then choose okay.

Other options are marked 'Parameters' & 'Visualization'

Parameters

On parameter, tick/untick the option marked as 'Ray', this will extend/unextend the trend line up to the point where you have chosen. Download MetaTrader platform to learn what this we're talking about.

Visualization

Visualization is used to choose whether the line is displayed on all time frames or only shown on a choose few time frames that a trader can select & choose from this option as shown below.

Customizing Tools MT4 Studies

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